Govt relaxes ECB policy; infra sector can now borrow $500 mln

New Delhi, Sep 22 (UNI) Taking into account the huge fund requirements of the infrastructure sector, the government today further liberalised the External Commercial Borrowings (ECB) policy for the sector by enhancing the existing limit of 100 million dollars to 500 million dollars under the Approval Route towards capital expenditure per year.

''Considering the huge funding requirements, particularly for meeting Rupee expenditure, it has been decided to enhance the existing limit of 100 million dollars to 500 million dollars per year for the borrowers in the infrastructure sector under the Approval Route,'' a Finance Ministry release said here.

However, the borrowings in excess of 100 million dollars should have a minimum average maturity of seven years, it said.

The Ministry also allowed the corporates to pay higher interest rates on borrowing funds with a maturity of seven years.

Now the corporates will pay 4.5 per cent over six months LIBOR against earlier rate of 3.5 per cent.

UNI MP AK BD2025