Overseas borrowings may go up after dipping in Apr, May

Mumbai, Jun 29 (PTI) Overseas borrowings by corporates
are likely to turn upbeat in the months to come in the wake of
government easing the curbs on fund raising abroad and
prevailing high interest rates on domestic loans.
According to figures released by the Reserve Bank, the
total overseas borrowing of Indian companies went down to USD
1.16 billion and USD 1.29 billion in April and May
respectively from USD 4.4 billion in March.
The release further stated that in April as many as 25
firms raised funds via external commercial borrowings (ECB)
and foreign currency convertible bonds (FCCB), while in May 30
companies raised money through these two routes.
Among the major borrowers in April, Petronet LNG raised
USD 200 million for rupee expenditure and import of capital
goods, while Reliance Communications raised USD 250 million
for import of capital goods. Further, Reliance Pharmaceuticals
raised USD 180 million for shipment of capital goods.
In May, Jet Airways (India) raised USD 287 million for
financial lease and import of capital goods.
In the month of February, the overseas borrowing had
declined to less than USD 1 billion, though six companies
during the month raised money from abroad for acquisitions.
However, in March the ECB rose to USD 4.4 billion with
corporate biggies like Reliance Communications, Adani Power,
Tata Group and Essar Oil borrowing massively for various
purposes like import of capital goods etc.
The government relaxed ECB curbs particularly for
infrastructure companies towards May-end. Earlier, companies
were allowed to bring up to USD 20 million raised abroad for
rupee expenditure. This limit has been enhanced to USD 100
million for infrastructure companies and USD 50 million for
others