India Inc borrowing dips to $1 billion in August

MUMBAI: Overseas borrowings by India Inc fell by nearly half to USD 1.08 billion in August against USD 2 billion during the previous month.

The total overseas loans raised by over 50 companies through external commercial borrowings (ECB) was down from USD 2 billion in July to USD 1 billion in August, according to the ECB data released by the RBI today.

Of the total borrowings, USD 934 million was raised through automatic route and USD 154 million was mopped up through approval route.

The ECB data for August showed that most of the companies raised overseas funds for import of capital goods, modernisation, projects, among other things.

Out of USD one billion, Tata Teleservices borrowed USD 300 million through automatic route for import of capital goods, while Petronet LNG mopped up the same amount for modernisation and projects.

Besides them, Hindustan Oil Exploration Company raised USD 125 million during the month.

Other firms which borrowed in August include Systema Shyam Teleservices and Mahindra Vehicle Manufacturers.