Power Finance Corporation (PFC) plans to raise Rs 5,300 crore from infrastructure bonds opened for subscription on February 24, a senior company official said on Monday.
“We plan to raise Rs 5,300 crore through infrastructure bonds issued during February 24-March 22,” PFC Director (commercial) M K Goel told reporters here.
Under section 80CCF of the Income Tax Act, 1961, through these bonds, an investor could enjoy a rebate of up to Rs 20,000 in the taxable income for the current financial year, he said. This was over and above the Rs 1-lakh deduction an investor could avail under section 80C of the Act, Goel said, adding PFC would provide a fixed rate of interest up to 8.5 per cent on an annual or cumulative basis, Goel said.
The bonds will be offered with maturities of 10 years and 15 years, and will have a buyback option after five and seven years, respectively, he said. PFC will use the generated funds for financing various power-related projects.
