India Inc's foreign borrowings plunge over 68% to $996 million in April

New Delhi: India Inc’s foreign borrowings plunge over 68% to $996 million in AprilOverseas borrowings by Indian companies fell 68.5 percent to $996.04 million in April, according to data from the Reserve Bank of India (RBI).

India Inc had raised as much as $3.16 billion from overseas markets in the corresponding month of the previous financial year.

Whereas no fund was raised by way of rupee-denominated bonds (RDBs) or masala bonds in April 2020, the borrowing during the year-ago month included $304,462 through RDBs.

Of the total borrowing from the foreign market in April this year, USD 696.04 million was raised through the automatic route of the external commercial borrowings (ECB).

REC, the financial service provider in the energy sector, was the sole entity to raise $300 million through the approval route of ECB for the purpose of on-lending.

Among the major borrowers in the automatic route included Sical Logistics $179.10 million for overseas acquisition. The company is engaged in the business of transport through land and pipeline.

Mahindra & Mahindra Financial Services raised $139.30 million for on-lending, and Adani International Container Terminal $98.51 million.

Among others were Veritas Software Technologies India’s $49 million for starting new project and HPCL-Mittal Energy Ltd, which is engaged in the manufacturing of coke and petroleum products, $40 million for rupee expenditure.

Automotive Electronics Power Pvt Ltd raised $32.79 million for working capital requirements and new project needs, while Hyundai Transys India Pvt Ltd borrowed $23.88 million for import of capital goods.