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.

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.