ECB norms for power firms eased

Power companies will now be able to raise ECBs for refinancing their rupee debt up to maximum limit of 40%, provided the remaining 60% of the ECB raised is utilised for investment in a new project.

Earlier, power companies were allowed to use only 25% of the ECB to refinance their domestic rupee-debt loan.

Also, the government opened the ECB route for capital expenditure on the maintenance and operations of toll systems in the roadways and highways sector provided these are part of the original project.

RBI is expected to issue relevant notifications within seven days giving effect to these Budget announcements.