New Delhi: Indian companies, including billionaire Mukesh Ambani-led Reliance Industries Ltd, garnered over $3.83 billion from overseas markets through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) in March, Reserve Bank of India (RBI) data showed.
About 117 companies raised over $3.2 billion for various projects via the automatic route, under which approval is not required from the RBI or the government, while another nine companies raised $632.15 million through the approval route, the central bank said in the statement Thursday.
Reliance Industries mopped up $391 million for importing capital goods through automatic route.
According to the data, Mangalore Refinery & Petrochemical mobilized $250 million, and Idea Cellular Ltd raised $150 million for modernization, both under the automatic route.
The state-run power sector lender Rural Electrification Corp Ltd raised $448.92 million in two tranches for its power projects under the approval route, while Sasan Power Ltd raised $150 million under the similar route.
In September last year, the government increased the ECB cap with tenor of five years or more under the automatic route to $750 million from $500 million earlier, and doubled the ECB limit under the automatic route for the services sector to $200 million and for non-governmental organizations (NGOs) to $10 million from the earlier $5 million.
The government had already raised the limit on total borrowing by all companies in a single year to $30 billion from $10 billion.
Indian firms use ECBs as an additional source of funding to increase resources available in the domestic market. FCCBs are also governed by regulations similar to ECBs.