Jain couple to leave minor daughter, Rs 100-cr property for monkhood

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, Jan 1: Karnataka Home Minister Basavaraj Bommai said here on Tuesday that the State government will think about making policy on giving compensation to the families of those who have died in police firing.

Speaking to newsmen here on Tuesday, he said that the government withholding compensation to the families of two persons who died in police firing in the city on December 19 after a protest against the Citizenship (Amendment) Act turned violent and even in 2006 when two persons had died in police firing at Mulky in Dakshina Kannada the then State government had not given any compensation to their families.

In the latest case, the First Information Report (FIR) has named the two persons who had died in the firing as the accused. After the incident, there were demands to provide compensation to the families of the victims.

Kalaburagi, Mar 14: Utter negligence of Kalaburagi health department officials was one of the main reasons for the death of his father, alleged family member of Kalaburagi man and India's first COVID-19 victim here on Friday.

The victim's son said 'if officials of Kalaburagi health department had advised us to admit his father in isolated ward, which was opened in Gulbarga Institute of Medical science (GIMS), my father's survival time may have been extended,' he said.