New Delhi: Government has already prepaid $ 1.4 billion worth of high-cost debt and $ 0.59 billion of bilateral loan this fiscal, Rajya Sabha was informed today (Dec 9, 2003).

"During the financial year 2003-04, Government of India has made further repayment of high-cost debt amounting to $ 1.4 billion. An amount of $ 0.59 billion of bilateral loans has already been prepaid in the current financial year so far," Minister of State for Finance Anandrao V Adsul said in a written reply.

Government also said it had de-recognised Overseas Corporate Bodies (OCBs) as a class of investor and therefore banned them from investing in India under Portfolio Investment route.

Government said it has allowed Asian Development Bank and the World Bank to raise funds from the domestic market through debt securities.

The terms and conditions for the Rupee bonds issue include a minimum maturity period of 10 years, 20 per cent risk weightage at par with bonds issued to domestic FIs, immunity from collection and payment of tax, specific clearance for each issue, permission to rollover the bond within the annual ceiling prescribed, permission to swap the Rupee funds for foreign exchange with market counter parties based in India, exchange of proceeds of bonds and waiver of domestic credit rating, Adsul said.

Adsul said an understanding had been reached with the World Bank for stepping up lending to infrastructure sector.

PTI