<p>Aviation sector stocks edged higher by 2-5 per cent in morning trade today on the BSE after the Reserve Bank extended ECB borrowing window for airlines till March 2015.<br /><br /></p>.<p>The Reserve Bank had yesterday extended the deadline for aviation sector to raise funds through external commercial borrowings (ECBs) route till March 2015, a move that would provide relief to the cash-crunched sector.<br /><br />Reacting to the development, shares of SpiceJet and Jet Airways gained on the bourses.<br />The SpiceJet scrip gained 5.48 per cent to Rs 14.05, while Jet Airways rose 2.65 per cent to touch an intra-day high of Rs 227.90 on the BSE.<br /><br />As per the earlier guidelines, the scheme was valid till December 31, 2013.<br /><br />Market analysts said the jump in the counters was largely a knee jerk reaction to the RBI's move of extending the ECB borrowing window.<br /><br />The overall ECB ceiling for the entire civil aviation sector would be USD 1 billion and the maximum permissible ECB that can be availed by an individual airline company will be USD 300 million, RBI had said.<br /><br />This limit can be utilised for working capital as well as refinancing of the outstanding working capital Rupee loan availed of from the domestic banking system, it added.</p>
<p>Aviation sector stocks edged higher by 2-5 per cent in morning trade today on the BSE after the Reserve Bank extended ECB borrowing window for airlines till March 2015.<br /><br /></p>.<p>The Reserve Bank had yesterday extended the deadline for aviation sector to raise funds through external commercial borrowings (ECBs) route till March 2015, a move that would provide relief to the cash-crunched sector.<br /><br />Reacting to the development, shares of SpiceJet and Jet Airways gained on the bourses.<br />The SpiceJet scrip gained 5.48 per cent to Rs 14.05, while Jet Airways rose 2.65 per cent to touch an intra-day high of Rs 227.90 on the BSE.<br /><br />As per the earlier guidelines, the scheme was valid till December 31, 2013.<br /><br />Market analysts said the jump in the counters was largely a knee jerk reaction to the RBI's move of extending the ECB borrowing window.<br /><br />The overall ECB ceiling for the entire civil aviation sector would be USD 1 billion and the maximum permissible ECB that can be availed by an individual airline company will be USD 300 million, RBI had said.<br /><br />This limit can be utilised for working capital as well as refinancing of the outstanding working capital Rupee loan availed of from the domestic banking system, it added.</p>