November 26, 1995

The Government today relaxed the Euro issue guidelines permitting companies to remit funds into India in anticipation of the use of funds for approved end uses. The earlier guidelines issued in October 1994 provided that the Euro issue proceeds were to be mandatorily retained abroad by the issuer companies to be repatriated as and when expenditure on approved project/end uses were incurred.

RBI chief justifies market intervention

The Reserve Bank of India’s (RBI) intervention to stabilise the rupee-dollar rate led to the short-term loss of liquidity in the domestic call money market. This was unavoidable, and once the exchange rate stabilised, the RBI injected money into the domestic market to stabilise it, the central bank Governor, Dr. C Rangarajan, said here on Saturday. He cited this as an example of how external changes also impinge on the exchange rate regime and hence have a bearing on the monetary policy.

Railways to relax terms for BOLT

The Railways plan to relax some of the conditionalities in the build own lease and transfer (BOLT) scheme which has found very few takers so far. It is also considering increasing the penalty paid to private operators under the “Own Your Wagon” scheme. A meeting of industry representatives will be convened within a fortnight to remove the irritants in both these schemes, the Minister of State for Railways, Mr. Suresh Kalmadi said. The Prime Minister assured Mr. Kalmadi on Saturday that he would pursue the issue of expeditious clearance of the $150-million issue of the Railways with the Finance Minister.

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