Govt raises ECB cap by $10 billion

In a bid to increase fund flow to credit starved sectors,the government has decided to raise the cap for external commercial borrowings by $10 billion. “The ECB limit has now been raised to $ 30 billion from the earlier $ 20 billion,” a senior government official said. The decision was taken at a high powered meeting on Friday and a formal notification will be issued soon. However,the limit for foreign institutional investors to invest in government bonds has been retained at $10 billion.