India to let power cos to lift 40% financing in abroad debt

India will allow power companies to raise overseas debt to finance up to 40% of rupee debt on existing power projects, likely in the next seven days, a finance ministry official said on Wednesday.

The country would also implement soon a proposal to allow external commercial borrowings for working capital requirement of airline industry for one year, for up to USD 1 billion, Thomas Mathew, joint secretary of capital markets in the finance ministry told reporters. Last month, Finance Minister Pranab Mukherjee had made an announcement in the annual budget for 2012-13 that the government would allow power companies to raise overseas funds.