Vital projects are starved for funds following the crisis. The desperation for solutions is palpable.
Last quarter, two large Indian companies looking to raise funds appeared to have been met with very different responses. L&T Finance Holdings comfortably raised Rs 10,000 crore through a combination of instruments (term loans, non-convertible debentures, external commercial borrowings and a preference share issue). Sajjan Jindal’s JSW Steel, which is looking to raise funds to invest in trebling capacity
(currently at London Inter-bank Exchange Rate plus 450 basis points) may be relaxed to allow more pricing freedom. Another is to allow multinational insurance companies, who typically look at investing long term, a foreign direct investment limit of 74% instead of the current 49%. All eyes are now on what the finance minister will announce come Budget day.