INFRA FINANCE COs ALLOWED TO BORROW MORE FROM ABROAD

Infrastructure finance companies can now raise more funds overseas with Reserve Bank of India (RBI) easing norms. The limit on External Commercial Borrowings (ECBs) for infra financing companies under the automatic route has been hiked to 75% of their net owned funds from 50%, including outstanding ECBs. Companies that want to avail of ECBs beyond 75% of their owned funds will require Reserve Bank of India (RBI) nod and will, therefore, be considered under the approval route. The hedging requirement for currency risk has been reduced to 75% of their exposure from 100%.