Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: form 3cd :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment
 
 
« General »
 NRIs’ overseas bank info needed only for tax refund
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind
 Pre-GST discounts get Maharashtra 16% more sales tax in three months
 Here’s how self-employed should efile their taxes

FinMin considers India Inc demand to raise renminbi ECBs
September, 09th 2011

The finance ministry is considering a proposal from Corporate India to accept China's currency Renminbi for overseas borrowings. This was one of the suggestions companies made in a meeting held by Finance Minister Pranab Mukherjee with industrialists on August 1.

The demand, according to bankers, is largely from power producing companies. Several companies including Reliance Power, Lanco, Adani Power, Jindal Steel & Power and GVK, have placed orders or are in the process of placing orders for power equipment from Chinese vendors. The country currently generates 1,80,358 MW and plans to add another one lakh MW during the next five years.

Finance ministry sources told The Indian Express that some companies have also suggested that the annual External Commercial Borrowing (ECB) limit be raised from $30 billion now. The decision to allow Renminbi along with raising ECB limits is likely to be taken at a high level committee meeting scheduled on September 15, the sources added.

Experts say the move to allow Renminbi ECBs, if allowed, will mainly benefit the power and telecom sector. There is a global shortage of dollar funding. Today, Indian companies are willing to borrow in a currency that is fast becoming international. However, the flip side is that they will be saddled with a liability which is not convertible. So that aspect has to be kept in mind, a banker said.

Further, the money borrowed doesn't flow into the country since Indian companies borrow from Chinese banks and pay to Chinese companies. Chinese firms have already started accepting payments in Renminbi. Also, companies need to hedge the risk and this will add to the borrowing cost. As a borrower, I don't see much benefit in this. I think it will mainly help power sector companies sourcing equipment from China, Hemant Kanoria, CMD, Srei Infrastructure Finance Ltd said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions