FEMA - ECB Policy - Import of Services, Technical know-how and License Fees
AT present, eligible borrowers can raise External Commercial Borrowings (ECB) for investment such as import of capital goods (as classified by DGFT in the Foreign Trade Policy), new projects, modernization / expansion of existing production units in the real sector - industrial sector including small and medium enterprises (SME), infrastructure sector as defined under the ECB policy and entities in service sector viz. hotels, hospitals and software companies.
On a review, it has been decided to include import of services, technical knowhow and payment of license fees as part of import of capital goods by the companies for the use in the manufacturing and infrastructure sectors as permissible end uses of ECB under the automatic / approval route as the case may be subject to certain conditions.
RBI A.P. (DIR Series) Circular No.119, Dated: June 26, 2013