INSUBCONTINENT EXCLUSIVE:
Petrol and diesel prices in the domestic market have touched record highs.New Delhi: The Reserve Bank of India (RBI) Wednesday relaxed
policy on borrowing from overseas to allow state-owned fuel retailers to raise up to $10 billion external debt for working capital needs
Till now oil marketing companies were not allowed to raise external commercial borrowing (ECB) for working capital needs on a long-term
They could raise a maximum of one-year overseas loan by way of buyers credit, repay it within 12 months and raise it again thereafter
Now, the RBI has allowed them to raise ECB of minimum maturity of 3 or 5 years.The move comes at a time when international oil prices have
(IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) will be allowed to raise overseas funds with a minimum
average maturity period of 3 or 5 years under the automatic route
prices climbing to four-year high and the rupee plunging to new lows, imports have come costlier
the said provision and permit public sector Oil Marketing Companies (OMCs) to raise ECB for working capital purposes with a minimum average
Director (Finance) A K Sharma said it is a welcome move as it would provide stability to working capital needs of oil companies
