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

RBI

RBI

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 400 billion rupees divestment programme for the fiscal year that ends in March, it said.