(a) whether the Government is planning to relax External Commercial Borrowings (ECB) norms of the country;
(b) if so, the details thereof ; and
(c) the necessities felt for providing such relaxation in the ECB norms ?
(a) whether the Government is planning to relax External Commercial Borrowings (ECB) norms of the country;
(b) if so, the details thereof ; and
(c) the necessities felt for providing such relaxation in the ECB norms ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE( SHRI S.S. PALANIMANICKAM )
(a), (b) & (c) As announced in the Budget 2005-06, a
window has been opened to enable qualified NGOs engaged in
micro-finance to access the External Commercial Borrowing
(ECB) window. Accordingly, NGOs engaged in micro finance
activities have been permitted to raise ECB up to USD 5
million during a financial year for permitted end-use,
under the automatic route. Detailed guidelines to
operationalise the decision have been issued by the Reserve
Bank of India.
ECB guidelines are reviewed periodically by the Government
in consultation with RBI based on current macro-economic
situation, challenges faced in external sector management
and the experience gained so far in administering ECB policy.