External Commercial Borrowings (ECB) for Civil Aviation Sector

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..... anagement (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000 and A.P. (DIR Series) Circular No. 5 dated August 1, 2005, as amended from time to time, relating to External Commercial Borrowings. 2. As per the extant guidelines, availing of ECB for working capital is not a permissible end-use. On a review of the policy relat .....

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..... B ceiling for the entire civil aviation sector would be USD one billion and the maximum permissible ECB that can be availed by an individual airline company will be USD 300 million. This limit can be utilized for working capital as well as refinancing of the outstanding working capital Rupee loan(s) availed of from the domestic banking system. Airline companies desirous of availing of such ECBs fo .....

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..... from the date of this circular. All other aspects of the ECB policy shall remain unchanged. 6. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to .....

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