October 8, 1966 sources, has assured us of loans upto Rs 15 crores in the year April 1966 to March 1967. We raised Rs 2 crores by a private issue of bonds towards the end of 1965 and are raising Rs 6 crores by a public issue this year. We need more funds, but at present it is extremely difficult to get much by issue of bonds in the market. Many banks do not have money to spare in the few weeks between the State Governments' market borrowings and the commencement of the busy season for which they try to conserve their funds. We receive unfailing help from the Life Insurance Corporation but here, too, there is a natural limit. Our bonds, guaranteed by the Central Government as to repayment of principal and payment of interest, give a relatively low yield. At a time when time deposits with banks and other institutions fetch rates of interest of over 7%, many industrial companies invite deposits at 12 or 13%, and speculative concerns pay even more, bonds with a maturity of 12 years and yielding slightly more than 5
