The Airports Authority of India (AAI) has decided to issue tax-free bonds worth US$162.8 million (INR1,000 crore) in the current financial year.
The move comes after the Indian government approved the construction of 50 low-cost airports across the country.
“The amount realised will be used to finance development of small airports. It would strengthen the financial position of AAI to build these airports,” AAI Chairman, V P Aggarwal told the Times of India.
Of the 50 low-cost airports, AAI plans to start work on 15 airports this calendar year itself, adding that, an inter-ministerial group (IMG), set up for this purpose, has decided the issue of appointing a consultant at their first meeting.
Those investing in these bonds, which normally have a long-term maturity plan like a decade, would get tax benefits. In this year’s Budget, Finance Minister P Chidambaram had said that state-run bodies like AAI could issue such bonds up to INR 50,000 crore.
Apart from 50 low-cost airports, India has also approved eight new Greenfield airports and two new international airports.