External Commercial Borrowing Policy liberalised
It has been decided to further liberalise the ECB policy as:-
i) At present, borrowers in infrastructure sector are allowed to avail ECB up to USD 100 million for Rupee expenditure for permissible end-uses under the Approval Route. Considering the huge funding requirements, particularly for meeting Rupee expenditure, it has been decided to enhance the existing limit of USD 100 million to USD 500 million per year for the borrowers in the infrastructure sector under the Approval Route. Borrowings in excess of USD 100 million should have a minimum average maturity of 7 years.
ii) In view of widening credit spreads in the International financial markets, it has been decided to modify the all-in-cost ceilings in respect of ECBs with minimum average maturity of over seven years.
RBI/008-09/190 - A. P. (DIR) Circular No. 16 Dated: September 22, 2008