The Airports Authority of India (AAI) will issue tax-free bonds worth Rs 1,000 crore this fiscal. It also expects that work on 15 small airports would begin this year.
“The amount realised (from bonds) will be used to finance the development of small airports,” V.P. Agarwal, Chairman, AAI, told reporters in Delhi.
People investing in such debt instruments will be exempted from income tax on the interest earned. These bonds are normally for a longer period, say, 10 years, and can then be bought and sold in a stock market just like a share. The Finance Minister, in his Budget speech, had said that institutions can issue bonds up to Rs 50,000 crore.
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