The government has asked the Reserve Bank to reconsider its external commercial borrowing (ECB) norms to allow foreign currency debt to infrastructure sector for medium term also.
The government has asked the Reserve Bank to reconsider its external commercial borrowing (ECB) norms to allow foreign currency debt to infrastructure sector for medium term also.
In a letter to RBI governor Raghuram Rajan, road, transport and highways secretary Vijay Chhibber has urged him to examine the ECB policy to allow overseas borrowings under medium term also.
The RBI, in November, allowed infrastructure companies to access long-term foreign currency denominated ECB with maturity of 10 years (Track II) and Indian rupee-denominated ECB with average maturity of three to five years ((Track III) .
“Limiting ECBs in the infrastructure sector in Track II and III only is restrictive and international lenders including JBIC in the current scenario, may not be forthcoming to provide long-term ECBs to Indian infrastructure companies,” he said.
