RBI Circular on ‘External Commercial Borrowings (ECB) Policy – Liberalisation of definition of Infrastructure Sector’

RBI Circular on ‘External Commercial Borrowings (ECB) Policy – Liberalisation of definition of Infrastructure Sector’

1. The Reserve Bank of India issued a Circular on ‘External Commercial Borrowings (ECB) Policy – Liberalisation of definition of Infrastructure Sector’ on January 06, 2014. The web-link of the said Circular is as below for ready reference:
https://rbidocs.rbi.org.in/rdocs/Notification/PDFs/85AP0114NTF.pdf

2. Highlights of said Circular are as below:
A.P. (DIR Series) Circular No. 85 dated January 06, 2014 issued by the Reserve Bank of India, Foreign Exchange Department regarding ‘External Commercial Borrowings (ECB) Policy – Liberalisation of definition of Infrastructure Sector’

As per Notification No. FEMA.281/2013-RB dated July 19, 2013 published in the Gazette of India vide G.S.R. No. 627 (E) dated September 12, 2013 and the A.P. (DIR Series) Circular No. 48 dated September 18, 2013, definition of infrastructure sector for the purpose of raising ECB was expanded taking into account the Harmonised Master List of Infrastructure sub-sectors and Institutional Mechanism for its updation approved by Government of India vide Notification F.No.13/06/2009-INF dated March 27, 2012.

On a review, it has been decided that, for the purpose of ECB, ‘Maintenance, Repairs and Overhaul’ (‘MRO’) will also be treated as a part of airport infrastructure. Accordingly, MRO, as distinct from the related services which are other than infrastructure, will be considered as part of the sub-sector of Airport in the Transport Sector of Infrastructure. All other aspects of ECB policy shall remain unchanged.

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