The major JNPT and Ennore ports have deferred their plans to issue tax-free bonds till next fiscal, anticipating better market conditions, a top government official said today.
"We would like to go for the bond issue next year when probably the interest rate would be more attractive and the market conditions would be better," Shipping Secretary K Mohandas said on the sidelines of the India Maritime Summit here.
Mohandas said both the major ports needed funds next fiscal and accordingly, the bonds will be issued.
"There is no immediate cash requirement by the identified entities (JNPT and Ennore). Their requirements would arise next year," Mohandas said.
Earlier, the government had said the two Centre-owned ports and a proposed company to invest and acquire stakes in overseas shipping assets would raise Rs 5,000 crore through the issue of tax-free bonds by March, 2012.
Both the centre-owned ports had proposed to issue tax-free bonds worth about Rs 2,500 crore this fiscal. Of this, JNPT -- the country's biggest container port -- was to raise Rs 1,500 crore from the sale of bonds. The remaining Rs 2,500 crore was planned to be raised by Indian Ports Global, a proposed company to be set up by the Ministry of Shipping for acquisition of overseas shipping assets.
In this year's Budget, the government allowed the Shipping Ministry to issue port sector bonds to the tune of Rs 5,000 crore.
India currently has 12 major ports -- Kolkata, Paradip, Visakhapatnam, Ennore, Chennai, Tuticorin, Cochin, New Mangalore, Mormugao, Mumbai, Jawaharlal Nehru Port Trust and Kandla.