`PSUs surpass FIs, banks in pvt placement of debt'

`PSUs surpass FIs, banks in pvt placement of debt'
PRESS TRUST OF INDIA

New Delhi, August 20: State public sector undertakings raised about Rs 3,800 crore through private placement of debt which is 16 per cent more than that was mopped up by financial institutions (FIs) and banks in first quarter of 2000-01.

Reliance was the only corporate figuring among the top 10 debt mobiliser mopping up Rs 893 crore through private placements, Prime Database, which monitors the Indian primary market, said.

Of the total Rs 10,304 crore raised through private placement of debt in first quarter of 2000-01, the share of state PSUs went up to Rs 37 per cent at Rs 3,799 crore while FIs and banks raised Rs 2,158 crore, it said.

"Most of the funds raised by state PSUs have been for infrastructure sector mainly power, roads and water resources," Prime, monitoring primary market in India, said.

Gujarat state government utility GEB mopped up Rs 500 crore while VIDC (Rs 450 crore) and GMIDC (Rs 375 crore) were other major debt mobilisers between April-June 2000, it said.

Rajasthan State Electricity Board raised Rs 400 crore and HPROIDC of Himachal Pradesh placed Rs 310 crore in debt. State PSUs had mopped up Rs 16,526 crore in 1999-2000, which is 30 per cent of the total funds raised through private placements, Prime said.

Although ICICI, raised Rs 887 crore, and IFCI (Rs 371 crore) were major players in primary debt market in first quarter, the aggregate amount raised by FIs and banks was only 21 per cent of total debt raised in first quarter, it said.

Central PSUs mopped up Rs 1,415 crore in the first quarter of this year, Prime said. Hindustan Petroleum Corporation Ltd raised Rs 500 crore while Indian Oil Corporation was able to mop up Rs 300 crore during the period April-June 2000.

Prime said government organisations, FIs and banks put together continued to dominate the primary debt market, mobilising 72 per cent of the total Rs 10,304 crore in the first quarter while 37 private companies raised a total Rs 2,932 crore, Prime said.

The share of financial sector dominated the debt market mopping up Rs 2,968 crore while power ranked second (Rs 1,887 crore) followed by water resources sector with Rs 1,374 crore, it added.