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Indian companies borrowed about $1.15 billion in December 2012 under the external commercial borrowings route for importing capital goods, modernisation and setting up of new projects.
This is much lower than the $4.4 billion borrowing from the external ECB and foreign currency convertible bonds (FCCB) route in December 2011.
In November 2012, India Inc borrowed $1.35 billion via ECBs and FCCBs.
The muted borrowings reflect the sombre economic mood in different sectors of the economy. The Reserve Bank of India had, in fact, raised the borrowing limits under the ECB and FCCB route to allow Indian companies access foreign funds at a cheaper rate of interest for productive purposes.
From the automatic route, Indian companies raised about $825 million in December 2012 and from the approval route, $321 million.
In December, Sintex Industries Ltd raised the maximum amount, totalling $120 million. Hindalco Industries and Jamshedpur Continuous Annealing & Processing Company raised $100 million each.
About 52 companies tapped foreign funds through the ECB route in December 2012, while no company raised any funds through the FCCB route.
satyanarayan.iyer@thehindu.co.in
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