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Construction : Newsmakers | May 2016 | Source : CW-India

Infra booster

The Reserve Bank of India's (RBI) Governor Dr Raghuram Rajan, is backing the push for infra in a big way. In a recent move, RBI has relaxed overseas borrowings norms to help companies raise funds for infrastructure projects in India. Under the guidance of Rajan, the central bank has reportedly reviewed the extant external commercial borrowing (ECB) guidelines, after taking into account prevailing external funding sources, particularly for long-term lending and the critical needs of the infrastructure sector. With this, infra investments get a huge boost, as now firms in the sector, non-banking financial companies-infrastructure finance companies (NBFC-IFCs), NBFCs-asset finance companies (NBFC-AFCs), holding companies and core investment companies (CICs) will also be eligible to raise ECB with a minimum average maturity period of five years, subject to 100 per cent hedging. Further, the exploration, mining and refinery sectors, which are not included in the list of the infrastructure sector but were eligible to take ECB, will be deemed as in the infra sector and can access ECB as applicable to the sector. Rajan is making a difference!
 
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