Mumbai: The global financial crisis has clearly hurt the overseas debt situation of Indian companies. Corporates raised $1.12 billion less than half of the amount mopped up in the previous month, despite liberalization of norms.
Indian companies raised $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 $400 million, data released by RBI showed.
Reliance Industries borrowed $100 million through the automatic route for import of capital goods, while $300 million was mobilized for the project after approval from the government.
Jaiprakash Associates Ltd raised $60 million through ECB to import capital goods, while Essar Shipping Ports & Logistics Ltd borrowed $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, modernization and rupee expenditure.
Jagran Prakashan raised $12 million in October for modernization. Great Offshore and BP Energy India Pvt borrowed a total of $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 $500 million for rupee or foreign currency expenditure under the automatic route.