markettrend766
08-10-2008, 06:19 AM
To enable mining, exploration and refinery sectors access overseas borrowings more liberally, the government on Tuesday included them under the category of infrastructure, for whom the norms of these debts were relaxed last month.
"On a review, it has been decided that for development of the mining, exploration and refinery sectors in the country, the definition of infrastructure for the purpose of ECB (external commercial borrowings) may be expanded," an official statement said here. At present, infrastructure includes seven sectors — power, telecommunication, railways, road, sea port and airport, industrial parks and urban infrastructure.
Last month, the government had liberalised ECB norms for infrastructure to enable them bring back up to $500 million into India for rupee capital expenditure. The statement said, the changes in the ECB policy would come into effect from the date of notification by the RBI.
Last year, the government had imposed a $20-million cap for each company to bring back ECB into India for rupee capital expenditure as the rupee was appreciating due to huge inflow of foreign money.
"On a review, it has been decided that for development of the mining, exploration and refinery sectors in the country, the definition of infrastructure for the purpose of ECB (external commercial borrowings) may be expanded," an official statement said here. At present, infrastructure includes seven sectors — power, telecommunication, railways, road, sea port and airport, industrial parks and urban infrastructure.
Last month, the government had liberalised ECB norms for infrastructure to enable them bring back up to $500 million into India for rupee capital expenditure. The statement said, the changes in the ECB policy would come into effect from the date of notification by the RBI.
Last year, the government had imposed a $20-million cap for each company to bring back ECB into India for rupee capital expenditure as the rupee was appreciating due to huge inflow of foreign money.