'Weak Market To Blame for Muted Response to Tax-Free Bonds by Ports'
By PTI
New Delhi: Weak market sentiments and low coupon rates dampened the response to the tax-free bonds issued by the State-owned JNPT, Ennore Port and Dredging Corporation, last fiscal.
“Of the total issue size of Rs.3, 500 crore for the above entities, only Rs.194.85 crore was subscribed. The muted response was mainly on account of weak market sentiments and low coupon rates,” Minister of Shipping G. K. Vasan told the Lok Sabha.
The issue size of JNPT (Jawaharlal Nehru Port Trust) was Rs.2, 000 crore and the actual subscription was Rs.41.32 crore.
Similar was the fate of tax-free bonds issued by Ennore Port (issue size Rs 1,000 crore and actual Rs.94.65 crore) and Dredging Corporation (issue size Rs.500 crore and actual Rs.58.88 crore), according to official data.
Vasan said, “These port sector entities generate their own internal resources as well as have the capacity to raise extra budgetary resources, such as loans, to fund their planned expenditure.”
Thus, a lack of response to their tax-free bonds would not impact their future development plans, he said.
There are 12 major or big-size ports in India — Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin and Kandla.
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