vishnuvega
08-12-2007, 02:28 PM
Government on Friday announced issuing bonds worth Rs 3,890 crore to 22 fertiliser companies, including IFFCO and Tata Chemicals, as compensation toward subsidy for this financial year.
The bonds carry a coupon rate of 8.30 per cent and will mature in 2023. The first tranche of bonds is being issued at par, an official release said.
Indian Farmers Fertilizer Co-operative Limited (IFFCO) got a major chunk of bonds, with an amount of Rs 1031 crore. Indian Potash Ltd gets bonds worth Rs 706 crore, Tata Chemicals worth Rs 182 crore and Gujarat State Fertilizers & Chemicals Ltd Rs 217 crore.
Fertiliser Minister Ram Vilas Paswan had earlier said the government would issue bonds to the tune of Rs 7,500 crore to fertilizer companies against the subsidy bill, which is likely to reach nearly Rs 48,000 crore this fiscal.
Investment in these bonds by banks will not be reckoned as an eligible investment in government securities for their statutory requirements. However, investment by insurance companies will be reckoned as investment under "other approved securities" category, the release said.
Investment by Provident Funds, Superannuation Funds and Gratuity Funds in these bonds will be treated as an eligible investment under the order of the Ministry of Finance.
Separately, another official release said the government would sell bonds worth a total of Rs 7,000 crore through auction on December 14. The auction would be conducted by RBI.
The bonds maturing in 2017 will carry a coupon rate of 7.99 per cent and fetch Rs 5,000 crore. The bonds maturing in 2036 carry a coupon rate of 8.33 per cent and would mobilise Rs 2,000 crore
The bonds carry a coupon rate of 8.30 per cent and will mature in 2023. The first tranche of bonds is being issued at par, an official release said.
Indian Farmers Fertilizer Co-operative Limited (IFFCO) got a major chunk of bonds, with an amount of Rs 1031 crore. Indian Potash Ltd gets bonds worth Rs 706 crore, Tata Chemicals worth Rs 182 crore and Gujarat State Fertilizers & Chemicals Ltd Rs 217 crore.
Fertiliser Minister Ram Vilas Paswan had earlier said the government would issue bonds to the tune of Rs 7,500 crore to fertilizer companies against the subsidy bill, which is likely to reach nearly Rs 48,000 crore this fiscal.
Investment in these bonds by banks will not be reckoned as an eligible investment in government securities for their statutory requirements. However, investment by insurance companies will be reckoned as investment under "other approved securities" category, the release said.
Investment by Provident Funds, Superannuation Funds and Gratuity Funds in these bonds will be treated as an eligible investment under the order of the Ministry of Finance.
Separately, another official release said the government would sell bonds worth a total of Rs 7,000 crore through auction on December 14. The auction would be conducted by RBI.
The bonds maturing in 2017 will carry a coupon rate of 7.99 per cent and fetch Rs 5,000 crore. The bonds maturing in 2036 carry a coupon rate of 8.33 per cent and would mobilise Rs 2,000 crore