India may borrow $9.5 bln by pledging assets: Bloomberg

Mumbai: India plans to borrow up to Rs 500 billion by pledging property and shares to bridge the government’s budget deficit, Bloomberg reported on Thursday, citing unnamed government officials.

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Shares in companies such as cigarette-to-hotels group ITC , engineering conglomerate Larsen & Toubro and Axis Bank held by a state-controlled fund could be offered as collateral to raise the cash, the news agency said.

The cash will be used by a newly-created fund manager to buy stock in state-run companies and help the government’s Rs 400 billion divestment programme for the fiscal year that ends in March, it said.

Reuters