Inland Waterways Authority of India to Raise USD 103 mln Through Bonds
The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the Revalidation of permission to raise Extra Budgetary Resource (EBRs) of INR 660 crore (USD 103 mln) as Government of India Bonds by Inland Waterways Authority of India (IWAI) in 2017-18.
The proceeds from the bonds will be utilized by IWAI for development and maintenance of National Waterways (NWs) under National Waterways Act, 2016 (effective from 12.4.2016). Funds received through issue of bonds will be used exclusively for capital expenditure to improve infrastructure funding.
The investment to be undertaken for development of NWs on identified projects in 2017-18 is estimated to be approximately Rs. 2412.50 crore. The World Bank has sanctioned a loan of USD 375 million for Jal Marg Vikas Project (JMVP) on 12.04.2017.
The whole exercise would be undertaken by IWAI through appointment of lead managers and coordination with SEBI. Funds will be released in 02 tranches keeping the size to get attractive yield from the borrowers. Borrowing in the last quarter of the year 2017-18, especially during the last two months of the year 2017-18 would be avoided.
Gross budgetary support from the Government of India and external financial support for funding development and maintenance of 106 new National Waterways under National Waterway Act, 2016, is grossly inadequate.