Govt takes $ risk for PSU overseas bonds

The government is looking at giving the firms being asked to raise capital from abroad via quasi-sovereign bonds an extra cushion of comfort by providing immunity to currency risk involved in the exercise. Additionally, sources said, the government would also seek to improve sentiments in currency market by asking oil marketing companies (OMCs) to cap their dollar payments for crude imports to $350 million a day. Based on Q1FY14 import data, OMCs spent a daily average of $466 million onpetroleum imports.

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