New Delhi, June 1: The government has decided to permit borrowers in the service sector to avail External Commercial Borrowings (ECB) up to 100 million dollars for import of capital goods under the approval route. These include hotels, hospitals and software companies. At present, borrowers in the service sector are not eligible to avail ECB under the automatic route.
An official release here said these amendments in the ECB policy will come into force on the date of notification of regulations and directions issued by the Reserve Bank of India in this regard under the Foreign Exchange Management Act, 1999.
The ECB policy has regularly been reviewed by the government in consultation with the RBI to keep it in tune with the evolving macroeconomic situation, changing market conditions, sectoral requirements, the external sectors and lessons of experience learnt.
Just a few days back, the government has liberalised the ECB policy relating to the infrastructure.