Reliance Industries (RIL) has been granted permission by the Reserve Bank of India (RBI) to retain an additional $2 billion from lenders. The company had originally raised $3 billion in loans in the last fiscal year, but the strong demand for the loan saw RIL retain more than needed.
The RBI’s approval will allow RIL to utilize the extra $2 billion for working capital and expansions in its energy and telecoms businesses.
The RBI’s decision is a vote of confidence in RIL’s financial strength and ability to repay the loans. It also demonstrates the RBI’s support for RIL’s investment plans.
Key details of the RBI’s approval include:
- RIL can retain the additional $2 billion for a period of five years.
- The retained amount will accrue an interest rate of 6.5%.
- The RBI’s approval is subject to RIL meeting specific financial conditions, such as maintaining a minimum credit rating.
This approval from the RBI is a positive development for RIL and its shareholders. It enables the company to pursue its investment plans and expand its businesses.
