external commercial borrowing

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 my company is into imports and exports of paper and chemicals. We plan to buy a warehouse in india for storing our products (our commercial use ). can we use the external commercial borrowing route to fund our warehouse purchase as it is for our expansion.

regards

rahul kapoor
rahul_605@live.com

G.SARAVANA KANNAN

G.SARAVANA KANNAN (Expert)
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14 January 2011 Hi Ruhul, Pls go thro the below link...it may help you...http://www.banknetindia.com/banking/ecbdetail.htm

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2011 Thanx MR.Kannan for your reply.
i read the details in d above mentioned link. one of the paragrapg says

''USD 5 MILLION SCHEME

All Corporates and Institutions are permitted to raise ECB upto USD 5 million equivalent at a minimum simple maturity of 3 years. Borrowers may utilise the proceeds under this window for general corporate objectives without any end-use use restrictions excluding investments in stock markets or in real estate. The loan amount may be raised in one or more tranches subject to the caveat that the total outstanding loan under this scheme at any point of time should not exceed USD 5 million. Each tranche should have a minimum simple maturity of 3 years. (Government have delegated the sanctioning powers to Reserve Bank of India (RBI))""

it says we cannot use the proceeds in real estate. is warehousing included in real estate but its for commercial use and not for speculation.