Around 50 companies raised USD 946,321,713 through the automatic route for various projects, while USD 182,435,430 was raised by four companies under the approval route.
Delhi-based Bhushan Steel garnered USD 300 million in ECBs under the automatic route for its domestic use (rupee expenditure).
Bilt Graphic paper Products and Heidelberg Cement India raised USD 145 million (for rupee expenditure) and USD 125 million (for refinancing old loans), respectively, during the month in ECBs.
Corporates, registered under the Companies Act, 1956, can access ECBs, up to USD 500 million in a financial year, under the automatic route. The ECB, which is not covered by the automatic route, is considered under the approval route on a case-by-case basis by RBI.
ECBs are used as an additional source of funding by Indian corporates to build capacity and raise fresh investments to augment the resources available domestically.
Foreign Currency Convertible Bonds (FCCBs) are also governed by norms similar to ECBs. Companies may also resort to the FCCB route for raising funds.
Other major fund raising in November under the automatic route was done by The Great Eastern Shipping Co which raised USD 49 million for import of capital goods.
Under the approval route, L&T Sapura Shipping raised a total of around USD 141 in two tranches for import of capital goods.