Subscribe to BCA Journal Know More

November 2011

A.P. (DIR Series) Circular No. 26, dated 23-9-2011 — External Commercial Borrowings (ECB) — Bridge Finance for Infrastructure Sector.

By Gaurang Gandhi
Chartered Accountant
Reading Time 1 mins
fiogf49gjkf0d
This Circular permits, under the Approval Route, Indian companies which are in the infrastructure sector, to import capital goods by availing of shortterm credit (including buyers’/suppliers’ credit) in the nature of ‘bridge finance’, subject to the following conditions:

(i) The bridge finance must be replaced with a long-term ECB;

(ii) The long-term ECB must comply with all the extant ECB norms; and

(iii) Prior approval must be obtained from RBI for replacing the bridge finance with a long-term ECB.

Download PDF

You May Also Like

(2011) 52 DTR (Mumbai) (Trib.) 295 Sri Adhikari Brothers Television Networks Ltd. v. ACIT A.Y.: 2000-01. Dated: 22-9-2010

A.P. (DIR Series) Circular No. 27, dated 23-9-2011 — External Commercial Borrowings (ECB) — Rationalisation and liberalisation.