A day after
RBI liberalised norms for raising
overseas funds , the central bank on Tuesday revised procedures for the companies which want to tap the
external commercial borrowings (ECBs).
"On a review, it has been decided to rationalise the form submitted to the Reserve Bank for obtaining Loan Registration Number (LRN) to reflect the liberalisation and rationalisation measures that have been carried out over a period of time," the apex bank said.
Accordingly, borrowers desirous of obtaining LRN from July 1 onwards may submit the revised Form, it said.
However, all other conditions of
ECB, such as eligibility of borrower, recongnised overseas lender, end use and reporting arrangements, will remain unchanged.
In its bid to enhance more capital flows and ease pressure on the sliding rupee, the RBI in consultation with the government had further liberalised ECB norms on Monday.
It allowed Indian companies in manufacturing and infrastructure sector to avail of ECB for repayment of rupee loans and fresh capital expenditure. The overall ceiling for such ECBs would be $10 billion.
The indicative annual ECB ceiling for Indian companies now stands at $40 billion, up from $30 billion.
India Inc has raised $34.40 billion by way of ECBs in 2011-12 fiscal. In the April-May period of the current fiscal, the companies have already mopped up $5.97 billion.
Special 
