(a) the current overseas borrowing limit for Indian companies;
(b) whether the Govt. has recently increased overseas borrowing limit; and
(c) if so, the details thereof and the reasons therefor?
(a) the current overseas borrowing limit for Indian companies;
(b) whether the Govt. has recently increased overseas borrowing limit; and
(c) if so, the details thereof and the reasons therefor?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a): The current overseas borrowing limit for Indian Companies,other than those belonging
to Hotels,Hospitals and Software Sectors,incorporated under the Company’s Act, 1956 is US$
500 million per financial year for Rupee expenditure and/ or foreign currency expenditure
for permissible end-uses under the Automatic Route. Such corporate can also avail of ECB
for an additional amount of US$ 250 million with an average maturity period of 10 years
under the Approval Route subject to certain conditions.
(b) & (c): ECB policy including the overall limit for overseas borrowing is reviewed regularly
by the Government in consultation with RBI keeping it in line with the evolving macro-economic
situation,changing market conditions,sectoral requirements,developments in the external sector
and lessons of experience.Consequent upon such a review, the Government has announced certain
modifications in ECB policy in January 2009,but no overseas borrowing limit has been increased
as such.