IWAI TO RAISE GOVT. SERVICED BONDS OF Rs.1,000 CRORE IN FEB-MARCH 2017 TO PARTLY FUND WATERWAYS EXPANSION

IWAI TO RAISE GOVT. SERVICED BONDS OF Rs.1,000 CRORE IN FEB-MARCH 2017 TO PARTLY FUND WATERWAYS EXPANSION

IWAI TO RAISE GOVT. SERVICED BONDS OF Rs.1,000 CRORE IN FEB-MARCH 2017 TO PARTLY FUND WATERWAYS EXPANSION

 

No.PR-161
January 24, 2017
New Delhi
 

IWAI TO RAISE GOVT. SERVICED BONDS OF Rs.1,000 CRORE IN FEB-MARCH 2017 TO PARTLY FUND WATERWAYS EXPANSION
 

IT EXPECTS Rs.4,000 CRORE BUDGETARY ALLOCATION IN 2017-18 FOR THE SAME: AMITABH VERMA
 

Inland Waterways Authority of India (IWAI) will raise Rs.1,000 crore from market in the month of February and March 2017 in two parts with Rs.500 crore each to part fund the expansion of India’s inland waterways through government serviced bonds, disclosed its Chairman, Mr. Amitabh Verma.
 

In addition, the Authority is anticipating a budgetary support as well extra budgetary allocations of about Rs.4,000 crore for the aforesaid purpose in the forthcoming budget for fiscal 2017-18, added Mr. Verma.
 

Inaugurating a National Maritime Conclave 2017 under aegis of PHD Chamber of Commerce and Industry here today, Mr. Verma explained that IWAI has planned to roll out Rs.500 crore worth of bonds after budget proposals for next fiscal are announced and that the forthcoming monetary policy is pronounced by RBI on February 7, 2017.
 

The second portion of it of remaining Rs.500 crore would be raised subsequently in March, clarified, Mr. Verma, emphasizing that the bonds be totally government serviced so that there is commitment of the government on these and that their subscribers have no doubts on their counter guarantees.  The Authority has triple AAA ratings for issuance of these bonds from leading rating agency CRISIL.
 

In addition, the Chairman, IWAI also said that it was expecting a budgetary support and extra budgetary allocations for development of waterways across the country to the tune of close to Rs.4,000 crore in fiscal 2017-18 as he has received indications to this effect from its administrative Ministry.
 

Giving the breakup of Rs.4,000 crore of budgetary support and extra budgetary allocations, Mr. Verma pointed out that Rs.2,500 crore could come to IWAI by the government introducing an amendment to Central Road Fund Act latest by Monsoon Session if not in Budget Session.
 

“The amendment would make a way for the government to apportion 5% of money out of highways and roads funds away to IWAI to enable it raise additional resources to undertake its waterways development which approximately works out to be Rs.2,500 crore in fiscal 2017-18 alone”, said Mr. Verma exuding an optimism that the budget for 2017-18 could also have a provision of Rs.1,000 to Rs.1,500 crore of money in terms of extra budgetary allocations.
 

He also informed that the IWAI is developing 111 waterways across the country, development for eight of them would be taken up in the current year and 12 each in subsequent two years and the process would go on thereafter.
 

The President, PHD Chamber, Mr. Gopal Jiwarajka in his welcome remarks said that waterways development should be one of the top priorities of the government because it makes an economic sense with sufficiently addressing the issues relating to environment and pollution.
 

Among others who spoke on the occasion comprised Senior Vice President, PHD Chamber, Mr. Anil Khaitan its Chairman-Roads, Ports & Other Infrastructure Committee, Mr. Ashish Mohan Wig along with Chamber’s Director, Dr. Ranjeet Mehta.
 

Ends.

Koteshwar Prasad Dobhal
Consultant (PR)