DECEMBER 20238TOP STORIESADITYA BIRLA GROUP TO SECURE FINANCING TO EXPAND MANUFACTURINGCENTRAL GOVERNMENT TO EXTEND INCENTIVES FOR LOCAL MANUFACTURINGIn the words of people familiar with the matter, Birla Carbon India Pvt, a closely held unit of billionaire Kumar Mangalam Birla's Aditya Birla Group, is raising an offshore loan of about $1.5 billion.According to the people who declined to be identified because the discussions are private, the proceeds from the sale will be used primarily to refinance existing debt, with a smaller portion set aside to fund expansion. Axis Bank, DBS Group Holdings, First Abu Dhabi Bank, ICICI Bank, HSBC Holdings, Standard Chartered Bank, and Union Bank of India are among the lenders.As per the data compiled by Bloomberg, the manufacturer of carbon black additives, which are widely used in tyre manufacturing and plastic coatings, will be among the top five Indian borrowers raising foreign currency loans this year once the transaction is completed.The planned fundraising comes against the backdrop of rapid credit growth in the world's fastest-growing major economy. According to the data, Indian corporations have raised $19.8 billion in loans so far in 2023, the most in four years.Birla Carbon did not respond immediately to a request for comment. According to the company's website, it is the world's leading producer and supplier of carbon black. The central government has announced that any incentives offered to promote local production of electric vehicles will be available to both foreign and domestic investors. This comes after automakers in India raised concerns regarding potential import duty concessions for American carmaker Tesla.According to senior government officials, Tesla has requested temporary tariff concessions in order to establish a manufacturing facility in India. However, New Delhi is opposed to granting any specific exemptions to individual companies. An official stated that the government's focus is on the industry as a whole rather than any particular company, emphasizing the strength of domestic companies in the sector. They also mentioned that any incentives provided will be equitable for both domestic and foreign investors.Local carmakers have expressed concerns about extending concessional tariffs to Tesla before policy guidelines are solidified. They believe that this move will negatively affect the significant amount of investments they have already made or are planning to make in producing electric vehicles in the country.A senior industry executive, who preferred to remain anonymous, stated that carmakers are worried that a reduction in import duty could give an unfair advantage to the American carmaker, which has not made concrete investments in the country yet. While the industry has not yet officially raised any objections with the government, there are concerns among several carmakers.
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