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ECB norms relaxed

With the rupee showing signs of stabilising against the dollar (it actually weakened in May), the government has relaxed external commercial borrowing (ECB) norms.

     Print Edition: June 29, 2008

With the rupee showing signs of stabilising against the dollar (it actually weakened in May), the government has relaxed external commercial borrowing (ECB) norms.

 Helping hand

  • ECB ceilings eased substantially

  • RBI approval to remain mandatory

  • Norms were tightened last year to control capital inflows

Infrastructure companies can now raise $100 million or Rs 430 crore (up from $20 million or Rs 80 crore) while others can bring in $50 million or Rs 215 crore (up from $20 million).

RBI approval, though, will remain mandatory. This move is expected to come as a shot in the arm for corporate India whose expansion plans have been hamstrung by tight domestic monetary policies, which led to high interest rates.

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