India Inc's overseas borrowings jump to $2.84 billion

Mumbai: Indian companies' external commercial borrowings surged manifold to over $2.84 billion in August 2021, the Reserve Bank data showed on Wednesday. The domestic firms had raised $145.74 million from the overseas markets in August 2020.

Of the total funds raised during the month under review, $2.25 billion was through the automatic route of ECBs, while $600 million came in via the approval route.

Break-up wise, the government undertaking REC Ltd, which finances and promotes power projects in the country, was the only company to tap the automatic route, raising $600 million for on-lending.

Major borrowers in the automatic route include telecommunications company Summit Digitel Infrastructure $500 million for refinancing of rupee loans; Hindustan Petroleum Corporation $450 million for modernisation purpose; Indiabulls Housing Finance $275 million for on-lending; FS India Solar Ventures $207.60 million for import of capital goods and Housing Development Finance Corporation (HDFC) raised $200 million for on-lending.

Flextronics Technologies (India) raised $100 million for working capital requirement; rubber and plastics products manufacturer ATC Tires AP $96 million for a new project; and furniture manufacturer Uflex Ltd raised $51.77 million for import of capital goods and new project.