State run Power Finance Corporation has sought an approval from the Reserve Bank of India to raise USD 1 billion from external commercial borrowings.

Mr KC Venugopal minister of state for power informed the Rajya Sabha that "Power Finance Corporation has approached the RBI for in principle approval of USD 1 billion to set up a Medium Term Notes program for raising external commercial borrowings.”

The money would be utilised for funding the power projects, including ultra mega power projects financed by Power Finance Corporation.

The minister said another state-run firm, the Rural Electrification Corporation, intends to mobilise over $1 billion from ECBs during the current financial year

(Sourced from moneycontrol.com)