- External Commercial Borrowings (ECBs)
are defined to include commercial bank loans, buyers' credit,
suppliers' credit, securitised instruments such as Floating Rate Notes
and Fixed Rate Bonds etc., credit from official export credit agencies
and commercial borrowings from the private sector window of
Multilateral Financial Institutions such as International Finance
Corporation (Washington), ADB, AFIC, CDC, etc.
- ECBs are being permitted by the
Government as a source of finance for Indian Corporates for expansion
of existing capacity as well as for fresh investment.
- The policy seeks to keep an annual
cap or ceiling on access to ECB, consistent with prudent debt
- The policy also seeks to give
greater priority for projects in the infrastructure and core sectors
such as Power, oil Exploration, Telecom, Railways, Roads &
Bridges, Ports, Industrial Parks and Urban Infrastructure etc. and the
- Applicants will be free to raise
ECB from any internationally recognised source such as banks, export
credit agencies, suppliers of equipment, foreign collaborators,
foreign equity-holders, international capital markets etc. offers from
unrecognised sources will not be entertained.
Go back to main page of External Commercial Borrowings (ECB) Section