RIL's high borrowing costs a sign of India Inc's troubles going ahead

If Reliance has to shell out about one percentage point more for short-term money, after some time the bond market could be out of bounds for many lower-rated firms altogether, experts say

At a time when the policy repo rate is at 6 per cent and three-month government treasury bills are trading at 6.15 per cent, India’s biggest company, Reliance Industries, raised Rs 15 billion of three-month money on Monday at 7.1 per cent.

About the same time last year, Reliance was raising money for two to three months at 6.13-6.15 per cent, much closer to the prevailing treasury bill rate. On Tuesday, Godrej Industries raised money through three-month commercial paper at 7.12 per cent. 

State-owned firms, though, seem to be doing remarkably well. Chennai Petroleum raised money for two months at