India Inc's Dec overseas borrowing down 30% to $1.56 bn
Press Trust of India / Mumbai Feb 01, 2010, 18:40 IST
India Inc's overseas borrowing declined by over 30 per cent in December to $1.56 billion compared to the previous month.
Total overseas loans raised by around 70 firms through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCB) slipped from $2.35 billion in November to $1.56 billion in December, according to the ECB data released by the RBI today.
Of the total borrowings, $1.25 billion was raised through automatic route and $312 million was mopped up via approval channel.
The data show that most of the companies raised overseas funds for importing capital goods, modernisation,new projects, overseas acquisitions, and refinancing of old loans among other things.
Of the $1.56 billion, $402 million was borrowed by Daimler India Commercial Vehicles through ECB under the automatic route for new projects, followed Idea Cellular which raised $260 million through the same route to import capital goods.
Public sector lender IDBI Bank raised $225 million through the ECB route under approval channel for refinancing its old loans.
Other companies which borrowed during the month include Larsen & Toubro, Hotel Leelaventure, Apollo Tyres and Mundra Port & Special Economic Zone.
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