Forex Loans from Forex Reserves

The Reserve Bank of India has given an in-principle nod to invest five billion dollars of foreign exchange reserve annually in infrastructure projects through two subsidiaries of India Infrastructure Finance Company Ltd. (IIFCL). The RBI Board has given in-principle approval in respect of the Special Purpose Vehicle (SPV) to be established to borrow funds from the RBI and lend to Indian companies implementing infrastructure projects in India, or to co-finance their ECBs for such projects solely for expenditure outside India,”