‘Indian oil firms can stagger $10-bn overseas borrowing’

New Delhi: The Finance Ministry on Thursday said that the $10 billion foreign currency loans that state-run oil-marketing companies (OMCs) can raise for their working capital needs will have to be staggered over a period of one year from now.

The oil companies can raise $10 billion via External Commercial Borrowings (ECBs) with a maturity of five years in a phased manner, with an initial tranche of $4 billion followed by two tranches of $3 billion each, in one year from now, the ministry said in a statement.

The ministry’s statement follows the Reserve Bank of India’s decision on Wednesday to relax ECB norms for the working capital needs of fuel retailers. The RBI has waived off the individual company limit of $750 million or equivalent and the mandatory hedging requirements, as it seeks to stem the rupee’s slide. (IANS)