India to set up vibrant bond market: Mukherjee
January 19th, 2011 - 9:32 pm ICT by IANS
New Delhi, Jan 19 (IANS) India plans to develop a vibrant bond market to facilitate infrastructure financing, as the source of nearly one-third of the targeted $1 trillion investment in the sector during the 12th plan period is not known yet, Finance Minister Pranab Mukherjee said Wednesday. “We want to develop and set up a vibrant bond market in the country to facilitate infrastructure financing,” Mukherjee said after launching the British-India Infrastructure Group here.
As per the existing regulations, Indian companies can issue bonds in Indian currency, which gets traded on the corporate bond market in the country.
Foreign institutional investors can invest in these bonds up to $20 billion collectively, with a “carve out” of $5 billion for infrastructure projects solely.
The finance minister said the government was considering creating a regulatory framework for credit enhancement. “Various options with regard to creation of infrastructure debt fund are being examined by the Ministry of Finance,” he said.
Mukherjee said nearly half of the targeted $1 trillion investment in infrastructure sector during the 12th plan period (fiscal 2012-17) is envisaged to be financed through private sources.
“Public Private Partnership (PPP), wherein the private sector is participating in the construction and operation of public infrastructure asset, is one of the most important development in infrastructure delivery in our country,” he said.
He urged foreign firms, especially British companies, to increase investments in India’s infrastructure sector.
Addressing the newly constituted British-India Infrastructure Group, Secretary of State for Business, Innovation and Skills Vince Cable said several UK companies were interested to invest in India’s infrastructure sector.
Cable said the British-India Infrastructure Group would facilitate the flow of investment between the two countries.
- UK Business Secretary meets Anand Sharma - Jan 19, 2011
- Jump in private funds for infrastructure likely in 12th plan - Dec 23, 2010
- Overcome hurdles to up investment in infrastructure: FICCI - Sep 11, 2011
- Government eyes long-term debt to fund infra projects - Oct 12, 2010
- Private sector to invest $500 billion in infra: Mukherjee - Nov 08, 2010
- Finance ministry vetting infrastructure debt fund scheme: Montek - Jun 10, 2011
- India seeks US investment in power sector - Sep 20, 2011
- FII investment cap in infrastructure raised - Feb 28, 2011
- Tax-free bond target for infrastructure projects at Rs.60,000 crore - Mar 16, 2012
- India to set up debt fund to finance infrastructure - Jun 24, 2011
- PPPs to boost infrastructure industry: Economic Survey - Mar 15, 2012
- Mukherjee to present Budget 2011 with focus on infrastructure, tax liability - Feb 27, 2011
- British business minister on way, infrastructure deals on cards - Jan 14, 2011
- Private players can also issue infrastructure bonds: Mukherjee - Mar 23, 2010
- NHAI, UKTI sign agreement for trade, investment in 'Roads and Highways Sector' - Jan 18, 2011
Tags: british india, business innovation, corporate bond market, credit enhancement, debt fund, finance minister, foreign institutional investors, group secretary, india infrastructure, indian currency, infrastructure delivery, infrastructure group, infrastructure projects, infrastructure sector, ministry of finance, plan period, pranab mukherjee, public infrastructure, public private partnership, vince cable