BRIDGE FINANCE FOR INFRASTRUCTURE SECTOR

Considering the specific needs of the infrastructure sector, the existing ECB policy has been reviewed in consultation with the Government of India and it has been decided to allow Indian companies which are in the infrastructure sector, where "infrastructure" is as defined under the extant guidelines on External Commercial Borrowings (ECB), to import capital goods by availing of short term credit (including buyers' / suppliers' credit) in the nature of 'bridge finance', under the approval route,subject to the following conditions:-

• the bridge finance shall be replaced with a long term ECB;
• the long term ECB shall comply with all the extant ECB norms; and
• prior approval shall be sought from the Reserve Bank for replacing the bridge finance with a long term ECB.