January 12, 1995
The $2.5-billion limit on external commercial borrowings for this year may be exceeded by $1 billion. According a top Finance Ministry official, around four months ago the Government took a decision to raise the cap on external commercial borrowings in view of the need for the seven fast-track power projects to raise loans in overseas markets. The Government had now set a new limit of $2 billions for non-infrastructure borrowings and $1.5 billions for infrastructure projects this year. With the clearances given to the four all-India financial institutions to tap the overseas debt market, the quota for non-infrastructure borrowings has been exhausted for the current year.
ITI venture for paging in Kerala
Come August, radio paging subscribers in the Kerala will see a new-look ITI in operation with its partner, Korea Telecom. ITI has established a joint venture, Inko Ltd., with Korean Telecom and Korean Mobile Telecom to implement the project. Korean Telecom will hold 49 per cent equity while ITI will hold the rest of the equity. ITI has established the Network Business Systems Division (NSD) to spearhead its foray into the value-added services. NSD is making plans to bid for the cellular mobile telephone services and basic services in March 31.
Bankers see drop in NRI remittances
The hike in cash reserve ratio (CRR) on Foreign Currency Non-Resident (B) and Non Resident Non Repatriable (NRNR) deposits will arrest the flow of NRI remittances into the country, top bankers feel. As it is, the reduction in interest rates offered on NRI deposits had throttled the flow of NRI remittances in the second half of the current financial year.