'PSUs to float over Rs 25,000 cr bonds in 06-07'

New Delhi, Aug 11: Public Sector Units (PSUs) are poised to tap the debt market to the tune of Rs 25,327 crore, and draw upon External Commercial Borrowings (ECBs) for another Rs 7,142 crore for funding their 2006-07 investment plans, an Assocham analysis said today.

These utilities would also raise Rs 66,257 crore through internal resources to fund their total investment plan of over Rs 1,42,000, the study highlighted.

As per estimates made by the Chamber's analysis on the PSUs Funding Programme, as much as Rs 23,920 crore would be pumped into the Power sector in the fiscal 2006-07. To raise this amount, the PSUs in this sector are set to float bonds worth Rs 9,009 crore in 2006-07, as against Rs 6,661 crore in the corresponding period last year.

An amount of Rs 5,423 crore would be generated through internal resources and Rs 3,587 crore through ECBs.

Assocham President Anil K Agarwal said NTPC has firmed up a total investment outlay of Rs 11,325 crore for 2006-07 and will be floating bonds for the amount of Rs 5,045 crore in 2006-07, as compared to Rs 3,590 crore in the previous year.

The Corporation would raise Rs 3,105 crore through internal resources and Rs 2,258 crore through ECBs. Bonds worth Rs 2,506 crore will be floated by Power Grid Corporation. It will raise Rs 1,084 crore through internal resources and Rs 1,058 crore raised through ECBs, for funding its big investment plan of Rs 4,849 crore in the year 2006-07.

For part funding its investment plan of Rs 22,764 crore, the Railway Ministry will raise Rs 10,669 crore through internal resources in 2006-07, as against Rs 7237 crore in the previous year.

Bonds worth Rs 5,170 crore would be floated by Indian Railways in the current fiscal against Rs 3,843 crore in the year 2005-06.

The analysis found that mega investments are lined up in the Communication and IT sector in the state-owned firms like Bharat Sanchar Nigam Ltd, which has plans to float bonds for Rs 3,655 crore and raise Rs 13,276 crore through internal resources in 2006-07, to invest a huge sum of Rs 16,931 crore in 2006-07.

The Ministry of Shipping, Road Transport and Highways has lined up huge investments of Rs 12,893 crore in 2006-07, with bulk investments going into the road sector.

National Highways Authority of India has a total plan outlay of Rs 10,302 crore in 2006-07, of which Rs 3,500 crore being raised through bonds.

The Nuclear Power Corporation (NPCIL), the nodal agency for harnessing nuclear energy for power generation in the country is set to float bonds worth Rs 1,394 crore in this fiscal for meeting its investment needs of Rs 3,400 crore.

Ministry of Urban Employment and Poverty has a total plan investment of Rs 6,758 crore in the year 2006-07. Within this sector, Housing and Urban Development Corporation will float bonds worth Rs 2,139 crore and raise Rs 318 crore through internal resources.

UNI