Raising of Funds for Development of Roads

By Accommodation Times (www.ccommodationtimes.com)

It is proposed in the Union Budget for the year 2011-12 to allow National Highway Authority of India (NHAI) to raise Rs.10,000 crores through issue of Tax-free Bonds. During the current financial year NHAI has raised Rs. 1330 crores only through issuance of Capital Gain Tax Exemption (CGTE) Bonds under Section-54EC of the Income Tax Act, 1961. No other infrastructure bonds have been issued by NHAI for development of roads during 2011-12. E-tendering in NHAI has been introduced for all road projects from Request for Qualification (RFQ) and Request for Proposal (RFP) stage with effect from 10.10.2011