Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Bid to rake in investments for railway projects

Author: IANS/Tuesday, March 27, 2018/Categories: Bonds

Bid to rake in investments for railway projects

New Delhi, March 26 - The Central government will guarantee the Rs 5,000 crore bond issue by the Indian Railway Finance Corporation (IRFC) to be subscribed by state-run Life Insurance Corporation (LIC) according to an official announcement on March 26.

A Finance Ministry release here said the move will further ease the flow of borrowed funds for the Railways Ministry to undertake projects. 

"The Ministry of Finance has approved the Government guarantee of Rs 5,000 crore in the current financial year for the IRFC bonds to be subscribed by the Life Insurance Corporation (LIC)," it said.

The Railways Ministry had signed an MoU with LIC in March 2015 under which the latter is required to provide financial assistance of Rs 1.5 lakh crore for identified projects between 2015 to 2019.

The IRFC has accordingly been raising funds from LIC by issue of bonds having a tenor of 30 years and remitting the same to the ministry for undertaking projects. 

However due to exposure limit constraints under the insurance regulator IRDA's guidelines, LIC has not been able to subscribe to IRFC bonds beyond a certain limit, the statement said.

"In order to overcome the exposure limit constraint, the Ministry of Finance has approved the government guarantee so that LIC can subscribe to the government guaranteed bonds without any limit as per IRDA guidelines," it said. 

The guarantee fee for the amount has also been waived by the ministry, the statement added.

Print Rate this article:
No rating

Number of views (106)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free