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India may borrow $9.5 bn by pledging assets: Bloomberg

Last Updated: Thursday, December 22, 2011 - 18:58

Mumbai: India plans to borrow up to 500 billion rupees by pledging property and shares to bridge the government's budget deficit, a reported on Thursday, citing unnamed government officials.

Shares in companies such as cigarette-to-hotels group ITC, engineering conglomerate Larsen & Toubro and Axis Bank held by a state-controlled fund could be offered as collateral to raise the cash, the news agency said.

The cash will be used by a newly-created fund manager to buy stock in state-run companies and help the government's 400 billion rupees divestment programme for the fiscal year that ends in March, it said.

Bureau Report

First Published: Thursday, December 22, 2011 - 18:58
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