India Inc raised over $3.7 billion from overseas markets in August through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).
Around 70 companies raised over $2.68 billion for various projects through the automatic route, which does not require RBI's or the government approval.
Another $1.02 billion were raised through the approval route, according to latest Reserve Bank data.
Auto giant Tata motors alone raised $500 million through ECBs for its rupee expenditure.
Similarly, state-owned Steel Authority of India mopped up $500 million in two tranches through ECBs during the month for modernisation of projects. Electrosteel Castings raised $200 million for the same purpose.
Corporates, registered under the Companies Act, 1956, were earlier allowed to access ECBs up to $500 million in a financial year under the automatic route. The ECB, which is not covered by the automatic route, is considered under the approval route on a case-by-case basis by the Reserve Bank.
However, last month the government raised the limit of external borrowings, with tenure of 5 years or more under the automatic route, to $750 million.
For the services sector, the ECB limit under the automatic route was doubled to $200 million and for NGOs from $5 million to $10 million.
ECBs are used as an additional source of funding by Indian corporates to augment resources available domestically.
FCCBs are also governed by norms similar to ECBs.
Other major fund raisers in August were Idea Cellular - $150 million, and Bhushan Steel - $135 million in three tranches for various project.
Under the approval route in August, national carrier Air India and private firm Spice Jet raised raised $366 million and $270 million, respectively, for import of capital goods.