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India decides to allow firms to raise capital abroad
NEW DEUII. Feb 15 Indu has agreed In principle to ul low selected companies to raise capital abroad through, convertible instruments, u senior official said, reports Reuter.
The proposal has been cleared 1n principle by the cabinet." said the official, confirming a report earlier this week by the Aslan Wall Street Journal which had been denied by a Finance Ministry spokesman
The spokesman obviously had not been Informed of the decision.' the senior official said It has happened '
The details ol how compu nies will be selected and so forth have not yet been de cklcd. but they will follow.' the official added, asking not to be Identified.
The decision Is the latest step in the minority Congress party government's far reach Ing reforms of highly regulated economy designed to open It up and Integrate It with the rest of the world after four decade* of solid protection.
Two of India s biggest com panics made appllcatfon* to raise a total of 225 mtllfon dollar on International markets last November after the gov ernment said It would allow
Indian firms to be listed over-
Reliance Industrie* (BREU. 80). a major conglomerate. lias applied for permission to be listed in London or Luxembourg and to raise 125 million dollar through convert tbfe Eurobond* of equity Issues.
Tata Iron and Steel Co Ltd (TISCO) . India ■ second biggest company made a slml lar appllcatfon and wants to raise 100 million dollar through similar Instrument*
AFP adds : India produced a record 747 mil bon kilos of tea in 1991. the highest for a year since the British Introduced the crop about 100 years ago.
the Pre*s Trust of India (ITT) reported
The production. 27 million kilos more than the 1990 out Bl. also breached tire targe t of
5 million kilo* sel for last year by the tea Industry, the news agency »akl quoting preliminary estimate*
Tire increase was mainly rc«*rdcd by the tea gardens tn the southern Indian states of Tamil Nadu. Kerala and Karnataka. Fil said In a report from Calcutta.
The richest of Indian tea is produced In the far eastern state of Assam, and on the hills of Darjeeling in neighbouring West Bengal province.