India Inc borrowing dips to $1 billion in August

Overseas borrowings by India Inc fell by nearly half to $1.08 billion in August against $2 billion during the previous month.

The total overseas loans raised by over 50 companies through external commercial borrowings (ECB) was down from $2 billion in July to $1 billion in August, according to the ECB data released by the RBI today.

Of the total borrowings, $934 million was raised through automatic route and USD 154 million was mopped up through approval route.

The ECB data for August showed that most of the companies raised overseas funds for import of capital goods, modernisation, projects, among other things.

Out of $1 billion, Tata Teleservices borrowed $300 million through automatic route for import of capital goods, while Petronet LNG mopped up the same amount for modernisation and projects.

Besides them, Hindustan Oil Exploration Company raised $125 million during the month.

Other firms which borrowed in August include Systema Shyam Teleservices and Mahindra Vehicle Manufacturers.