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Scope of ECBs set to widen

20th December, 2012

The Indian Government is all set to widen the scope of External Commercial Borrowings (ECB) by changing the definition of ‘infrastructure’, as approved by the Cabinet committee on infrastructure.

The Committee has identified five main sectors (transport, energy, water sanitation, communication, social and commercial infrastructure) and 29 infra sub-sectors for inclusion in the definition. The move will enable Indian companies to access foreign markets for funds at lower costs. .

If announced, companies in the education, health and other notified sectors will be eligible to tap funds through ECBs.
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