EXTERNAL COMMERCIAL BORROWINGS POLICY : LIBERALISATION
At present, borrowers proposing to avail ECB up to USD 20 million for Rupee expenditure for permissible end-uses require prior approval of the Reserve Bank under the Approval Route. It has been decided that, henceforth,
- borrowers in infrastructure sector may avail ECB up to USD 100 million for Rupee expenditure for permissible end-uses under the Approval Route.
- In the case of other borrowers, the existing limit of USE 20 million for Rupee expenditure for permissible end-uses under the Approval Route has been enhanced to USD 50 million.
This amendment to ECB guidelines will come into force with immediate effect. All other aspects of ECB policy such as USD 500 million limit per company per year under the Automatic Route, eligible borrower, recognized lender, end-use of foreign currency expenditure for import of capital goods and overseas investments, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged. The above changes will apply to ECB both under the automatic route and the approval route.
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