External Commercial Borrowings (ECB) for the low cost affordable housing projects is now under permissible end-use under Approval Route
On a review of the policy related to ECB and keeping in view the announcement made in the Union Budget for the Year 2012-13, it has been decided to allow ECB for low cost affordable housing projects as a permissible end-use,under the approval route. ECB can be availed of by developers/builders for low cost affordable housing projects. Housing Finance Companies (HFCs)/National Housing Bank (NHB) can also avail of ECB for financing prospective owners of low cost affordable housing units.
(b) Housing Finance Companies (HFCs):-
4. Developers/builders/HFCs/ NHB will not be permitted to raise Foreign Currency Convertible Bonds (FCCBs) under this scheme.
8. Reserve Bank of India has since amended the Regulations and notified vide Notification No.FEMA.246/2012 dated November 27, 2012.
Ref- A.P. (DIR Series) Circular No. 61 dated 17 December 2012