On a review of the policy related to External Commercial Borrowings (ECB) and keeping in view the announcements made in the Union Budget for the Year 2012-13, the Reserve Bank of India vide circular no.RBI/2011-12/519 A. P. (DIR Series) Circular No. 111 dated 20th April, 2012, has decided to further rationalize and liberalize the extant guidelines as under:-
1. Enhancement of Refinancing limit for Power Sector:-
Indian companies in the power sector will be allowed to utilise 40 per cent of the fresh ECB raised towards refinancing of the Rupee loan/s availed by them from the domestic banking system, under the approval route, subject to the condition that at least 60 per cent of the fresh ECB proposed to be raised should be utilised for fresh capital expenditure for infrastructure project(s). All other terms and conditions relating to refinancing of Rupee loans mentioned in A.P. (DIR Series) Circular No. 25 dated September 23, 2011 remain unchanged.
2. ECB for Maintenance and Operation of Toll systems for Roads and Highways:-
ECBs would also be allowed for capital expenditure under the automatic route for the purpose of maintenance and operations of toll systems for roads and highways provided they form part of the original project.
Please find attached herewith the link for the circular.....
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7154&Mode=0
1. Enhancement of Refinancing limit for Power Sector:-
Indian companies in the power sector will be allowed to utilise 40 per cent of the fresh ECB raised towards refinancing of the Rupee loan/s availed by them from the domestic banking system, under the approval route, subject to the condition that at least 60 per cent of the fresh ECB proposed to be raised should be utilised for fresh capital expenditure for infrastructure project(s). All other terms and conditions relating to refinancing of Rupee loans mentioned in A.P. (DIR Series) Circular No. 25 dated September 23, 2011 remain unchanged.
2. ECB for Maintenance and Operation of Toll systems for Roads and Highways:-
ECBs would also be allowed for capital expenditure under the automatic route for the purpose of maintenance and operations of toll systems for roads and highways provided they form part of the original project.
Please find attached herewith the link for the circular.....
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7154&Mode=0
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