ECBs also for exploration, mining, refinery

At present, infrastructure includes seven sectors 8212; power, telecommunication, railways, road, sea port and airport industrial parks and urban infrastructure water supply, sanitation and sewage projects. Last month, the government had liberalised ECB norms for infrastructure to enable them bring back up to 500 million into India for rupee capital expenditure. The statement said the changes in the ECB policy would come into effect from the date of notification by the RBI.

Last year, the government had imposed a 20-million cap for each company to bring back ECB into India for rupee capital expenditure as the Indian currency was appreciating because of huge inflow of foreign money.

With the rupee depreciation, the government relaxed these norms up to 100 million for infrastructure companies earlier this year. However, for other companies the cap was relaxed up to 50 million.

Government sources, however, said that relaxation in ECB policy was independent of the rupee value. It is estimated the infrastructure sector would require 500 billion in the next five years. Even with relaxation in ECB norms, analysts believe it might not be easy to raise money abroad since risks have increased after the global financial crisis.