Delhi: The Government today announced a new liberalised
external commercial borrowing (ECB) which would allow
automatic approvals for borrowings with an average maturity
of five years and above.
Reserve Bank of India has been asked by the Ministry
of Finance to announce the details of the new guidelines,
the Finance Minister, Mr Jaswant Singh said. The automatic
route for borrowings of maturity of five years and above
would be allowed as long as they are utilised for investment
in "critical sectors", infrastructure and
small and medium enterprises, Mr Singh added.
said that the new scheme would aim at minimising discretionary
elements beside simplifying and rationalising procedures.
It would also promote transparency to all ECBs.
Finance Minister said the new policy, which has been
reviewed in consultation with RBI, would enable corporates
to access resources from international markets at competitive