By Accommodation Times News Service
The National Housing Bank (NHB) the sole regulator of the housing finance companies said that they received a proposal from various mortgage to rise about USD 1.32 billion under the external commercial borrowings (ECB). HDFC and LIC Housing Finance are names to be included in this.
NHB Chairman, MD, R V Verma said, ‘’we have received proposals worth $ 1.32 billion under the ECB route. As per the mandate NHB has been authorized to do preliminary scrutiny of the proposal and then send to RBI for final approval soon.
Of this, HDFC has applied for raising funds upto USD 500 million, LIC Housing Finance USD 300 million, NHB USD 200 million, Indiabulls Housing USD 200 million, Dewan Housing Finance USD 70 million and Gruh Housing Finance USD 50 million. Adding more to details he said, Applications for LIC Housing Finance and Dewan Housing Finance are in the process of scrutiny and will be sent to RBI for final approval soon. Earlier this year, RBI had allowed housing finance companies (HFCs) and NHB to raise funds under ECB route for financing low-cost, affordable housing units during the current fiscal.
Even for the next year (2014-15), the RBI has set a limit of USD 1 billion. “In the first quarter alone we have received applications exceeding USD 1 billion. At this going rate it would touch USD 2 billion,” Verma said. However, he said, the government and RBI has to take a call on increasing the limit of USD 1 billion. This window is available to real estate developers as well besides HFCs.
India companies are increasingly availing ECB route, raising funds at lower cost from the overseas markets. At present, ECBs can be raised for investment such as import of capital goods, new projects, and modernization or expansion of existing production units.