India Inc raises $1.1 bn overseas in Oct

Written by Agencies | Mumbai, November 30: | Updated: Nov 30 2008, 20:13pm hrs
Global financial crisis has clearly hurt overseas debts of India Inc, as corporates raised USD 1.12 billion less than half of the amount mopped up in the previous month, despite liberalisation of norms.

The Indian companies raised USD 2.8 billion in September through the external commercial borrowing route.

Of the total money raised through external commercial borrowings (ECBs) in October, Mukesh Ambani-owned Reliance Industries borrowed the highest USD 400 million, data released by RBI showed.

Reliance Industries borrowed USD 100 million through the automatic route for import of capital goods, while USD 300 million was mobilised for project after approval from the Government.

Jaiprakash Associates Ltd raised USD 60 million through ECB to import capital goods, while Essar Shipping Ports & Logistics Ltd borrowed USD 148 million from overseas market for leasing and hire purchase during the month, RBI said.

A total of 44 Indian companies raised funds through ECB route during the month for overseas takeovers, import of capital goods, modernisation and rupee expenditure.

Jagran Prakashan raised USD 12 million in October for modernisation. Great Offshore and BP Energy India Pvt borrowed a total of USD 136 million through the approval route.

The companies which borrowed from overseas during the month to import capital goods include B C Instruments India, Parag Milk Foods Pvt Ltd, Jain Irrigation Systems and Behr India, the central bank said.

To give Indian companies more flexibility in raising money, with sources of funds drying up as a fall out of global financial meltdown, the RBI had relaxed ECB norms in October.

Now, companies have been allowed to bring in funds up to USD 500 million for rupee or foreign currency expenditure under the automatic route.