National Highways Authority of India (NHAI) and Indian Railways Finance Corporation, to sell taxfree bonds to raise Rs 40,000 crore this financial year. An investor can earn as high as 7.3-7.5 per cent as of now by subscribing to those bonds with 10-15-20 year maturities.

The government has mandated that issuers would price tax-free bonds at 80 bps less than similar maturity government bonds for institutional investors. An issuer can also sell bonds to them via private placement instead of public, but up to 30 per cent of the allotted size.