Millennium Post

India Inc’s Oct foreign borrowings up 44% to $2.78 bn

India Inc’s Oct foreign borrowings up 44% to $2.78 bn
Of the total borrowings in the month, $69.43 million was raised through approval route and $2.71 billion through automatic route. As many as 56 firms raised money from automatic route while three firms raised funds via the approval route.

In the approval route category, Indiabulls Housing Finance Limited raised $50 million for sub-lending, Roxul-Rockwool Insulation India Private Ltd $11.43 million for general corporate purpose and Cargill India raised $8 million for rupee expenditure.

Under the automatic route, the major borrowers were Tata Motors raising $750 million for rupee expenditure and refinancing of earlier ECB and Reliance Jio Infocomm $750 million for rupee expenditure.

Bharat Mumbai Container Terminals raised $494.53 million for port project and Larsen & Toubro borrowed $400 million for refinancing of earlier ECB and redemption of FCCBs. Aditya Birla Nuvo raised $42 million, Srei Infrastructure Finance, $30 million and Tata Hitachi Construction Machinery Co $39.14 million.

Meanwhile, easing norms for parking external commercial borrowings (ECB), the Reserve Bank said such loans can be kept as fixed deposits for a period of six months for use at a later stage. As per the extant norms, the money raised from abroad meant for rupee expenditure in India had to be brought immediately for credit to the rupee accounts of such borrowers.

‘With a view to providing greater flexibility to the ECB borrowers in structuring draw down of ECB proceeds and utilisation of the same for permitted end uses, it has been decided to permit banks to allow eligible ECB borrowers to park ECB proceeds in banks in India for a maximum period of six months pending utilisation for permitted end uses,’ RBI said in a notification.

However, the facility will be applicable with the conditions that such term deposits should be exclusively in the name of the borrower, it can be liquidated as and when required and no charge in any form should be created on these deposits.
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