RBI/2011-12/414
A. P. (DIR Series) Circular No. 85
February 29, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowings (ECB) for
Infrastructure facilities within
National Manufacturing Investment Zone (NMIZ)
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to
the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange)
Regulations, 2000, notified videNotification
No. FEMA 3/2000-RB dated May 3,
2000, as amended from time to time and A.P. (DIR Series)
Circular No. 5 dated
August 1, 2005, as amended from time to time.
2. As per the extant guidelines, availing of ECB is permissible for the
infrastructure sector, which is defined to include (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), (viii) mining, refining and exploration and
(ix) cold storage or cold room facility, including for farm level pre-cooling,
for preservation or storage of agricultural and allied produce, marine products
and meat. Developers of SEZ were also allowed to provide such infrastructure
facilities within the SEZ.
3. Keeping in view the infrastructural needs of the proposed National
Manufacturing Investment Zones (NMIZs), it has now been decided to
allow developers of NMIZ also to avail of ECB under the "approval route"
for providing infrastructure facilities within the NMIZ, as indicated above.
4. The modifications to the ECB policy will come into force with immediate
effect. All other aspects of the ECB policy, such as, recognised lender, average
maturity, all-in-cost, prepayment, refinancing of existing ECB and reporting
arrangements shall remain unchanged.
5. AD Category - I banks may bring the contents of this circular to the
notice of their constituents and customers.
6. The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Rashmi Fauzdar)
Chief General Manager