12 per cent decline in debt mobilisation by FIs and cos

The major decline in mobilisation, as per Prime Database, came by the state level undertakings (SLUs) who recorded a 44 per cent fall from Rs 11,314 crore in 2000-01 to Rs 6,334 crore. The instruction of RBI to banks to become more diligent with investments in debt private placements, specially those made by SLUs, was the major reason for the decline. Most of the funds raised by SLUs continued to be for the infrastructure sector, mainly power, roads and water resources. The leader in mobilisers was Sardar Sarovar (Rs.624 crore), followed by GEB (551), KBJNL (397), TIDCO (389) and J&KSPDC (343).

According to Prime, the year also witnessed an 18 per cent decline in mobilisation by the all-India financial institutions/ banks, down from Rs 22,787 crore to Rs 18,603 crore. Leading the pack of mobilisers was ICICI (Rs 3,018 crore), followed by HUDCO (1,968), REC (1,469), PFC (1,420) and IDBI (1,210). A notable development of the period was the increasing mobilisation by the private sector. In fiscal 2000-01, corporates had raised Rs 9,169 crore. In 2001-02, a 22 per cent increase was recorded at Rs 11,200 crore.