India Inc bags 1.44 bn via ECBs,FCCBs

As many as four firms raised around USD 27 million under the approval route,according to RBI data.

State-run Power Finance Corporation Ltd mopped up USD 260 million through External Commercial Borrowings ECBs during the month.

Another state-sector company,Bharat Petroluem Corporation Ltd raised USD 200 million via ECBs for its rupee expenditure.

Corporates,registered under the Companies Act,1956,can access ECBs up to USD 500 million in a financial year,under the automatic route. The ECB,which is not covered by the automatic route,is considered under the approval route on a case-by-case basis by RBI.

ECBs are used as an additional source of funding by Indian corporates to augment resources available domestically.

Foreign Currency Convertible Bonds FCCBs are also governed by norms similar to ECBs.

Other major fund raisings in February using the automatic route were undertaken by Bharat Oman Refineries which raised USD 125 million for funding its new project and HPCL Mittal Energy Ltd which mopped up USD 100 million.

Under the approval route,Hindustan Construction Company Ltd raised USD 17.23 million for import of capital goods during the period.