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United News of India
New Delhi, Dec 1: Private placements of debts have increased by 15 per cent to Rs 18,727 crore in the first six months of 1998-99 over the corresponding period last year, according to Prime data base. During the period, as many as 88 institutions and corporates have mobilised the amount, over Rs 16,340 crore last half-year.
The market had mobilised Rs 10,035 crore, Rs 18391 crore and Rs 30,944 crore in the fiscal 1995-96, 1996-97 and 1997-98, respectively. The size of the market for debt private placements has more than trebled over the last three years, according to Prime.
The highest mobilisation through debt private placement during the fiscal was IDBI (Rs 4,442 crore), followed by ICICI (Rs 1,667 crore), IFCI (Rs 1,292 crore), MKVDC (Rs 700 crore), Reliance (Rs 675 crore), Sail (Rs 570 crore), APSEB (Rs 519 crore), MJP (Rs 513 crore), Reliance Telecom (Rs 500 crore) and MSEB (Rs 500 crore).
Government organisations and development financial institutions, as per the report, continued to dominate,mobilising 77 per cent of the total amount. This represented an increase from its 75 per cent share in 1997-98 though a fall from 90 per cent in 1996-97. Among government organisations, the all-India financial institutions and banks led with a 46 per cent share (Rs 8,646 crore), followed with a 24 per cent share by state level undertakings (Rs 4,479 crore) and a one per cent share by state financial institutions (Rs 200 crore).
A significant feature of period, pointed out by Prime, was the growing emergence of state level undertakings, most of which raised resources primarily for infrastructure. From a meagre Rs 311 crore in full 1995-96 and Rs 2,630 crore in 1996-97, 1997-98 has seen this sector raise a high Rs 6,726 crore. In the six-month period of 1998-99, the SLUS raised raised Rs 4479 crore. The major mobilisers were Maharashtra Krishna Valley Dev Corp (Rs 700 crore), APSEB (Rs 519 crore), Maharashtra Jeevan Pradhikaran (Rs 513 crore), MSEB (Rs 500 crore), KSEB (Rs 400 crore), Krishna Bhagya JalaNigam (Rs 320 crore) and RSEB (Rs 300 crore).
On the other hand, there was a drop in the mobilisation efforts of psus: down from Rs 5,301 crore in 1996-97 to Rs 4,008 crore in 1997-98 to only Rs 1,173 crore in the six-month period. The period witnessed a further improvement in the mobilisation by the private sector. While Rs 7,763 crore had been raised by 95 companies in full 1997-98, the recent period saw 51 companies from this sector raise Rs 4229 crore.
The financial services sector continued to dominate the market, collectively raising Rs 9,834 crore or 52 per cent of the total amount. Power ranked second with a 19 per cent share (Rs 3,497 crore), followed by water resources (Rs 1038 crore), steel (Rs 933 crore), telecommunications (Rs 857 crore and petrochemicals (Rs 685 crore).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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