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Railways to raise Rs 10k crore through tax-free bonds

Railways are to issue tax-free bonds by next month to raise around 10,000 crore rupees to raise market borrowings for capacity building. Talking to reporters Financial Commissioner Pompa Babbar said the Finance Ministry has given notification to four organisations, including PFC and Railways, for raising tax-free bonds. Mr. Babbar, however, said the amount to be raised through tax-free bonds depends upon market conditions.

He said, Railways have also got temporary relief on account of service tax on freight services as it has been kept at abeyance till December 31st. He, however , said the much awaited tax relief on the auxiliary services is yet to come.

AIR correspondent reports, the market borrowings of railways is pegged at 20,594 crore rupees in the current fiscal, out of which 10,000 crore rupees is expected to be raised through tax-free bonds by Indian Railway Finance Corporation for financing select capacity enhancement work.
Source - AIR

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