RBI to issue circular to allow MNCs who have subsidiaries in India to raise ECBs. Making a statement in Parliament, Finance Minister P. Chidambaram said measures will also be taken to enhance capital flows by allowing public sector financial institutions to raise quasi-sovereign bonds to finance infrastructure and liberalising ECB guidelines.
"Oil PSUs can raise USD 4 billion through ECBs", Chidambaram said.
He further said that the interest rate on FCNR deposits is being de-regulated. Moreover, IRFC, PFC, IIFCL will together raise USD 4 Billion as quasi-sovereign bonds.
On Indian rupee fall, Chidambaram said, “If we can contain CAD, sentiments in currency market and rupee will significantly improve.”
Chidambaram assured that the import of gold will come down to 850 tonnes in current fiscal from 950 tonnes in 2012-13.