Govt finalises details for tax-free bond issuance in '12-13

India will allow select companies to issue tax-free bonds in the rest of the financial year, finalising details of a proposal announced in the budget in February, according to a government notification obtained from two of the eligible issuers.

The government said in the notification seen by Reuters that a total of Rs 53.5 crore be raised through issue of tax-free infrastructure bonds in the current financial year that ends in March.

The government has set a target for tax-free bonds at Rs 60 crore by infrastructure finance companies in 2012-13, which would be used to bridge the shortfall in cash to fund large projects.

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