Asking firms to provide a fixed asset as collateral for a forex loan (‘Banks give Tata Power a collateral shocker’, May 22) will be a big setback to India Inc’s financing plans. A company setting up a new power project, for instance, will have pledged its major assets with banks for raising finance — to now expect the company to be able to free up the asset for a forex loan is a bit difficult. While this may not be a problem for the bigger companies such as Tata Power, it will pose a problem for the smaller and mid-sized ones.
D Parekh, Mumbai
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