Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Tuesday 31 January 2012

Hudco will raise Rs 5,850 cr through tax free bonds

 
Housing and Urban Development Corp (Hudco), the state-run techno- financial institution catering to housing and urban infrastructure requirements, may be allowed to issue tax-free bonds for funding core infrastructure projects. It may need to raise Rs 5,850 crore over the next seven years to fund the projects.
 

A high-powered committee headed by former finance secretary Ashok Jha to rejuvenate Hudco has recommended that the government-owned enterprise should be permitted to raise funds under the purview of municipal tax-free bonds.

This will enable Hudco to sanction more loans for housing and core infrastructure projects. The government is considering the recommendations and an appropriate decision will be taken soon.

At present, municipal bonds are raised only by urban local bodies for capital investment in setting up of urban infrastructure projects in areas such as urban transport, roads, bridges, portable water supply, sanitation and solid waste management.

The committee said the government has already provided for a significant tax waiver under this scheme, which has not been availed fully by urban local bodies, "and thus the projected amount of bond

issues remains unutilised". Hudco is expected to utilise the funds more efficiently compared to local bodies, where the money mostly lies idle as it is raised upfront, while the requirement for projects is in stages. Local bodies will be able to avail loans from Hudco as and when required, depending upon the progress of the project.

The bonds are likely to be at a coupon rate of 8.25 per cent, which will result in savings of Rs 512 crore over seven years, assuming

bonds will be redeemed in equal installments. This will enable Hudco to reduce the cost of funds for the sector and reduce the negative net interest margin of Rs 1,176 crore over the next seven years.

The panel has also suggested that Hudco should be allowed to raise cheaper funds by issuing 54 (EC) bonds, which are marketed at 7.5 per cent, compared with Hudco's present borrowing cost of 12 per cent.

Permission to issue these bonds may result in savings of Rs 608 crore in three years and address the asset-liability mismatch.

The committee said that Hudco should be regulated by the Reserve Bank of India and not by National Housing Bank (its present regulator) because its portfolio comprises 65 per cent of infrastructure projects and only 35 per cent of housing projects. It has also supported restoration of equity support of Rs 100 crore per year to Hudco, which was discontinued in 2004 after the enterprise got 'miniratna' status.

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

 

------------------------------------------------
How to apply to IRFC Bonds?

Apply for IRFC Tax Free Bonds forms below

Download IRFC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

------------------------------------------------
How to apply to HUDCO Bonds?

Apply for HUDCO Tax Free Bonds forms below

Download HUDCO Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

 

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

 

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications