| Date: |
02-03-2010
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| Notification No: |
RBI A P D (Series)Circular No 38/2009
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2009-10/333 |
| Subject: |
External Commercial Borrowings (ECB) Policy - Infrastructure
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RBI/2009-10/333
A.P. (DIR Series) Circular No.38
March 02, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowings (ECB) Policy
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited
to the A.P. (DIR Series) Circular No. 5 dated August 1, 2005 and A.P. (DIR
Series) Circular No. 20 dated October 8, 2008 relating to External Commercial
Borrowings (ECB).
- As per the extant ECB policy, infrastructure sector is defined 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.
- As announced in para 54 of the Union Budget for the Year 2010-11, it has been
decided to expand the definition of infrastructure sector, for the purpose of
availing of ECB, to include “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”. Accordingly, the infrastructure sector would
henceforth be 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, exploration and refining 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.
- All other aspects of the ECB policy, such as, USD 500 million limit per
company per financial year under the automatic route, eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of
existing ECB, reporting arrangements and terms and conditions stipulated in the
A.P. (DIR Series) Circulars shall remain unchanged.
- 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
is without prejudice to permissions/approvals, if any, required under any other
law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge
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