HSIIDC to raise Rs 3500 crore through bonds
The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has decided to raise about Rs 3500 crore through bonds and long-term loans from financial institutions this year to meet its fund requirement for creating a land bank and development of industrial projects.india Updated: Jul 20, 2011 19:48 IST
The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has decided to raise about Rs 3500 crore through bonds and long-term loans from financial institutions this year to meet its fund requirement for creating a land bank and development of industrial projects.
It plans to use bulk of the funds for creating the land bank of 10,000 acres and developing and strengthening industrial model townships and industrial estates in different parts of the state. “The process to acquire over 5000 acres of land in Kharkhoda, Bawal and Manesar is underway. The corporation will require finances for land acquisition in these areas,” financial commissioner and principal secretary (FCPS), industries, YS Malik told Hindustan Times.
He said that there would also be fund requirement to meet additional outgo on account of enhancement in the land acquisition costs at some places and for turnkey projects for development of IMTs at Rohtak and Faridabad. HSIIDC has estimated fund requirement to the tune of Rs 4600 crore for these projects lined up over the next 2-3 years.
Out of this, the corporation hopes to arrange Rs 900 crore from its internal accruals and cash reserves. However, this still leaves a gap of Rs 3500 crore, which is to be met through the issue of bonds and long-term borrowing from the banks and financial institutions. It has already initiated the process appointment of a financial consultant for structuring the bond issue, securing necessary approvals, marketing strategy and post-issue support.
Proposals have been invited from consultancy agencies for providing advisory services for raising these funds through government guaranteed bonds. “The corporation did not have such a huge fund requirement earlier and was meeting most of the requirement by way of short and long term loans from the National Capital Region Planning Board, banks and financial institutions with tenure ranging between three years and seven years,” an HSIIDC official said.
He said that with all these mega projects and expected outflow of funds, there would be a huge requirement of funds which would be difficult to meet out of the traditional route of loaning. However, it is not clear whether the corporation would opt for “plain vanilla” (traditional) bonds or try out something different.
First Published: Jul 20, 2011 19:46 IST