A cumulative amount of Rs 16,982 crore had been garnered through 20 issues of NCDs in 2012-13.
NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
Most of the funds were raised to support working capital requirements and for other general corporate purposes.
Indian companies collectively raised Rs 42,738 crore via NCDs in the previous financial year through 35 issuances, according to data with the Securities and Exchange Board of India (Sebi). This was more than the Rs 16,150 crore initially targeted.
"Indian debt is costly. Still, companies rushed towards this route for the fund raising activity in 2013-14 as equity was not available and there was lack of confidence among investors," an analyst said.
Firms such as India Infrastructure Finance Company, Shriram Transport Finance Company, India Infoline Finance, SREI Infrastructure Finance and Muthoot Finance tapped the NCD route more than once.
All issues managed to raise more than the targeted amounts. In 2011-12, companies raised Rs 35,611 crore against a target of Rs 31,100 crore.
Indian Railways Finance Corporation raised Rs 4,083 crore in 2013-14, against a target of Rs 1,500 crore, while Power Finance Corporation mopped up Rs 3,876 crore against Rs 750 crore.
The National Highways Authority of India raked in a total of Rs 3,698 crore against a target of Rs 1,000 crore and Rural Electrification Corp raised Rs 3,441 crore, compared with Rs 1,000 crore it sought.