Liberalized ECB guidelines for import of capital goods by Infrastructure Sector
AFTER reviewing the existing ECB Policy by RBI in consultation with the Government of India it has been decided to allow Indian companies which are in the infrastructure sector, 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:-
(i) the bridge finance shall be replaced with a long term ECB;
(ii) the long term ECB shall comply with all the extant ECB norms; and
(iii) prior approval shall be sought from the Reserve Bank for replacing the bridge finance with a long term ECB.
A P (DIR Series) Circular No. 26/RBI., Dated: September 23, 2011