BJP supremo Amit Shah to visit Mangaluru on Oct 4

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

Mangaluru, Jul 3: Four central crime branch (CCB) police personnel tested positive for coronavirus on Friday in Dakshina Kannada district in Karnataka.

So far, eighteen police personnel, including an official of the ACP rank and 12 from Ullal police station, have tested positive for Covid-19 in the district in the last few days, police sources said.

A policeman from Mangaluru Rural station and another from Puttur station have also been infected.

All the personnel who tested positive have been admitted to the designated Covid-19 hospitals.

City police commissioner Vikash Kumar Vikash said adequate protection has been provided to police personnel who were fighting the pandemic and the members of their families.

As of Thursday, the total coronavirus cases in the district stood at 923 and the toll 18 while the state's infection count has crossed the 18,000 mark with 272 deaths.