RBI relaxes ECB norms for infra companies

It includes infrastructure finance companies and no prior approval will be required from the Reserve Bank for providing such credit enhancements,it said. The company fulfilling foreign equity criteria does not require permission for raising ECB up to $5 million.

Now onwards the term debt in the debt-equity ratio will be replaced with ECB liability and the ratio will be known as ECB liability-equity ratio to make the term signify true position as other borrowings or debt are not considered in working out this ratio,it said.

Service sector units,in addition to those in hotels,hospitals and software,could also be considered as eligible borrowers if the loan is obtained from foreign equity holders,it said.

This would facilitate borrowing by training institutions,R&D,miscellaneous service companies,etc,it said.