The Finance Ministry has told several Indian corporates to re-negotiate interest rates for foreign funds, as the rates now were uncompetitive. The Finance Ministry has also rejected the proposals of several corporates as the letters of offer from overseas creditors were for five years. Apart from the Indian financial institutions and a few top-rung corporate houses, overseas banks are not comfortable taking a long-term exposure, explaining their reluctance to provide letters of offer for tenures over five years. The minimum maturity for borrowings over $15 millions has been fixed at seven years, under the revised guidelines for ECBs. The Ministry is believed to have received applications for a staggering $ 6 billions from Indian companies including FIs for 1995-96. This is against the Government’s plan to allocate $ 4.5 billions.
Vadinar-Kandla oil pipeline on anvil
The Indian Oil Corporation Is planning to set up a pipeline to transport white oil products such as diesel and petroleum from Vadinar (Gujarat) to Kandla port, 250 km away. The petro-products transported through the partly submarine pipeline would be used for outward movement through the Kandla- Bhatinda pipeline (KBPL). An oil tank farm is also on the anvil at Vadinar.
3 in the race for Gangavaram jetty
Essar Projects, Western India Industries and Gujarat Ambuja Cements have been shortlisted by Rashtriya Ispat Nigam Ltd for building the jetty project at Gangavaram. The two other bidders, Kumar Metallurgical Corporation of Hyderabad and Abhay Ocean Project of Bombay, have been dropped. To facilitate the project, the AP government has declared Gangavaram a minor port under the Port Act.