Saturday, April 21, 2012

RUPEE LOAN REFINACNE IN POWER SECTOR UP TO 40% OF ECB PROCEEDS CAN USED UNDER APPROVAL ROUTE

Refinance of 40% of  Rupee Loan under Approal Route Through ECB Raised

Approval Route - ECB - Refinance of Rupee loan availed in India - for Power Sector




Earlier , Power sector was allowed up to 25% to refinance the Rupee loan availed India out of ECB proceeds availed . Now , it is allowed to raise upto 40% under Approval Route.

Indian companies in the power sector will be allowed to utilise 40 per cent of the fresh ECB raised towards refinancing of the Rupee loan/s availed by them from the domestic banking system, under the approval route, subject to the condition that at least 60 per cent of the fresh ECB proposed to be raised should be utilised for fresh capital expenditure for infrastructure project(s). All other terms and conditions relating to refinancing of Rupee loans mentioned in A.P. (DIR Series) Circular No. 25 dated September 23, 2011 remain unchanged.

RBI/2011-12/519- A. P. (DIR Series) Circular No. 111 dated April 20, 2012

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1 comment:

  1. Sir could you eloborate what is rupee refinancing?

    ReplyDelete