Reserve Bank Of India
A.P. (DIR Series) Circular No.78
January 21, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowings (ECB) Policy –
Repayment of Rupee loans and/or fresh Rupee
capital expenditure – USD 10 billion scheme
Attention of Authorized Dealer Category - I (AD Category - I) banks is invited
to
A.P. (DIR Series) Circular No. 134 dated June 25, 2012 and
A.P. (DIR Series)
Circular No. 26 dated September 11, 2012.
- As per the extant guidelines, Indian companies in the manufacturing and
infrastructure sector (as defined under the extant ECB policy), which are
consistent foreign exchange earners, are allowed to avail of ECBs for repayment
of outstanding Rupee loan(s) availed of from the domestic banking system and /
or for fresh Rupee capital expenditure.
- On a review, it has been decided to include Indian companies in the hotel
sector (with a total project cost of INR 250 crore or more), irrespective of
geographical location as eligible borrowers under this scheme. AD may certify
the project cost at the time of forwarding the ECB application to the Reserve
Bank.
- All other aspects of the scheme shall remain unchanged and the amended ECB
policy will come into force with immediate effect and is subject to review based
on the experience gained in this regard.
- AD Category-I banks may bring the contents of this circular to the notice of
their constituents and customers concerned.
- 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
RBI/2012-13/387