External commercial borrowings by Indian companies in April more than trebled to USD 1.30 billion, a sizable portion of which was taken to start new projects. The ECBs were at USD 304.57 million in April last year. The borrowings in April this year included USD 1.27 billion through the automatic route and USD 39.26 million from approval route, showed data from Reserve Bank.
Besides, there was additional borrowing of USD 394.53 million (Rs 2,545 crore) by India Inc through rupee denominated bonds (RDBs) in April 2017.
There was no RDB provision vis-a-vis a year ago, it as permitted from September 2016.
In the automatic route category, JSW Steel took loan of USD 500 million for overseas acquisition and refinancing of earlier ECB; HPCL-Mittal Energy raised USD 372 million to pay-off earlier ECB and Adani International Container Terminal Pvt Ltd USD 60 million for port related expenses. Essar Shipping was the only company under approval route raising USD 39.26 million for import of capital goods.
Those who floated rupee denominated bonds overseas were NTPC Ltd USD 310 million (Rs 2,000 crore) for power; Nissan-Renault Financial Services USD 62 million (Rs 400 crore) for on-lending and UCWeb Mobile USD 22.48 million (Rs 145 crore) for general corporate purpose.