BJP sinks into silence after UP, Bihar bypoll defeat

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.

Alappuzha, Apr 5: Coming to the rescue of a toddler in need of crucial treatment for cancer, the Kerala health department scrambled its resources for transporting a toddler from here to Hyderabad on Sunday.

In a co-ordinated action, the department arranged for an ambulance and necessary travel permits for the nearly 16-hour 1,100 km inter-state journey that started at 7.15 am from Cherthala in this district with the entire cost to be borne by the state government.

Health Minister K K Shailaja on Saturday said all steps have been taken to facilitate the travel of the toddler and her family members to Hyderabad after local media reports highlighted the plight of the child.

The state Chief Secretary had discussed the matter with his counterparts of other states en route to ensure a smooth journey,the Health Ministry said.

"The travel permit and directions to other states through which the ambulance has to pass were issued from the police headquarters. All district police chiefs were given instructions from the headquarters to arrange for passage of the ambulance," it said in a release.

The journey started at 7.15 am and they are expected to reach Hyderabad at 11 pm.

"The state government will bear the expenses incurred for the journey. The ambulance will remain in Hyderabad and will return with the family," it said.

The first phase of treatment was done at the L V Prasad Hospital in Hyderabad and the family was supposed to travel again within 21 days for the next phase of treatment.

As the family could not undertake the journey in view of the nation-wide lockdown to check coronavirus scare, the state government swung into action to help the child.

The number of confirmed novel coronavirus cases in the country climbed to 3,374 on Sunday while the death toll rose to 77, according to Union Health Ministry data.