The Hindu : Business : Centre issues fertilizer bonds for Rs. 3,890 cr.

Online edition of India's National Newspaper
Saturday, Dec 08, 2007
ePaper

Business

Business

Centre issues fertilizer bonds for Rs. 3,890 cr.

NEW DELHI: The Central Government on Friday announced issuing bonds worth Rs. 3,890 crore to 22 fertilizer 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.

IFFCO gets major share

The Indian Farmers Fertilizer Co-operative Limited (IFFCO) got a major chunk of bonds, with an amount of Rs. 1,031 crore.

Indian Potash gets bonds worth Rs. 706 crore, Tata Chemicals worth Rs. 182 crore and Gujarat State Fertilizers and Chemicals Rs. 217 crore.

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 the ‘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. — PTI

Printer friendly page
Send this article to Friends by E-Mail

Business