ANNOUNCEMENT 24 Apr 2012In April 2012, the government of India announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
26 March 2014
A.P. (DIR Series) Circular No.109 (11 June 2015)
On 24 April 2012, the Reserve Bank of India allowed the Civial Aviation sector to raise External Commercial Borrowings (ECBs) for working capital funding under the approval route. The overall borrowing limit is USD 1 billion for the entire sector and USD 300 million for an individual airline company. These funds could be used to finance working capital or for refinancing existing rupee loans.
The measure, as amended on 25 June 2013, is valid until 31 December 2013. On 26 March 2014, the above scheme was extended until 31 March 2015. Further on 11 June 2015, the measure was extended until 31 March 2015.
Through ECBs, Indian companies and Public Sector Undertakings can access funds from abroad. According to the Reserve Bank of India, ECBs refer to commercial loans in the form of bank loans, securitised instruments, buyers' credit and suppliers' credit availed of from non-resident lenders with a minimum average maturity of 3 years.