54 cos used the automatic route; Eight took the approval route
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Mumbai: Fifty four companies borrowed a total of $806,476,919 under the external commercial borrowing (ECB) automatic route in June whilst eight companies borrowed a total of $2,353,077,460 through the approval route bringing the total to $3,159,554,380 for the month of June.
The figures released by the RBI on Tuesday showed that among the highest borrowers through the automatic route were Reliance Utilities and Power Pvt Ltd., at $300 million for new projects followed by IDFC Ltd at $200 million for refinancing an earlier ECB and Reliance Industries Ltd $ 166 million also for financing an earlier ECB.
Only ten of the 54 borrowers did so for new projects and they included Makino India Pvt Ltd, TBEA Energy (India) Pvt. Ltd, and Assisi Garments Pvt Ltd. The rest of the 54 borrowers did so for import of capital goods while three were for refinancing of earlier ECBs.
There was only one company that borrowed in the mining, exploration and refining sector, Mercator Petroleum Limited. The majority were for import of capital goods, an indication that the manufacturing sector could be showing signs of of picking up
In the ‘approval route’ segment, the Power Finance Corporation and Bharati were the biggest ECB borrowers at $one billion each.
While Bharti borrowed to finance its telecommunication business, PFC did so for on-lending and sub-lending.
They were followed by Reliance Industries with borrowings of $200 million and the loan period is for a period of 20 years and three months.
( Source : deccan chronicle )
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