“For the first time we are allowing Yuan (Renminbi), equivalent of $1 billion as an acceptable currency under ECB, basically for infra and capital goods,” Department of Economic Affairs Secretary R Gopalan said.
Although the committee did not raise the overall ceiling of ECB which is currently at $30 billion, it did decide to relax the norms and raise the borrowing limits for various sectors to help the companies obtain funds from overseas markets at competitive rates.
Out of the total limit of $30 billion, ECBs amounting to $15.93 billion have been raised by the companies until August 2011. The government, Gopalan said, will also be looking at the possibility of reducing withholding tax on the ECBs.
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