FinMin pushes ministries to raise cash via bonds

The yields on the 10-year bond is now around 6.50%

To augment infrastructure funding, the finance ministry has written to other ministries asking them to tap the provisions made during Budget to raise funds worth Rs 31,300 crore through bonds.

These bonds will have to be raised this financial year, of which only two months are left. Some bonds have been issued but the response has been lukewarm. The issuances might not put pressure on the markets as the issuances will be privately placed.

The provisions to raise these bonds were made in Budget 2016-17, but the amount was not added to the total borrowing. Rather, these were earmarked as