ECB policy expanded to include mining, exploration, refinery

New Delhi, Oct 7 (UNI) The government today expanded the ambit of External Commercial Borrowings (ECBs) policy to bring under its purview mining, exploration and refinery sectors in the country, but kept all other aspects of the policy unchanged.

The aspects of the ECB policy which remain unaltered include eligible borrower, recognised lender, end-use of foreign currency expenditure for import of capital goods and overseas investments, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements.

At present, Infrastructure sector is defined in the ECB policy as (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges,(v) sea port and airport (vi) industrial parks and (vii) urban infrastructure (water supply, sanitation and sewage projects).

From henceforth, Infrastructure sector will be defined in the ECB policy as (i)power, (ii) telecommunication, (iii) railways, (iv) road including bridges,(v) sea port and airport (vi) industrial parks (vii) urban infrastructure (water supply, sanitation and sewage projects) and (viii) mining, exploration and refining.

An official release here said the amendments in ECB policy will come into force on the date of Notification of Regulations and directions issued by the Reserve Bank in this regard under the Foreign Exchange Management Act, 1999.

The ECB policy is regularly reviewed by the Government in consultation with Reserve Bank of India (RBI) to keep it in tune with the evolving macroeconomic situation, changing market conditions and sectoral requirements.

''On a review, it has been decided that for development of the mining, exploration and refinery sector in the country, the definition of infrastructure for the purpose of ECB may be expanded,'' the statement said.

UNI GS SG HT1942