External commercial borrowings

(A) Procedure for seeking ECB approval :

1. Applications for approval up to USD 10 million will be considered by the Exchange Control Department of RBI, Mumbai, w.e.f. 01/ 01/ 1999

2. Applications for amount more than USD 10 million and under structured obligation may be submitted by the borrowers in the prescribed format to the Joint Secretary (ECB), Department of Economic Affairs, Ministry of Finance, North Block, New Delhi-110 001.

(B) The application should contain the following information :

1. An offer letter from the lender giving the detailed terms and conditions;

2. Copy of Project Appraisal Report from a recognised Financial Institution/Bank, if applicable;

3. Copies of relevant documents and approvals from Central/State Governments, wherever applicable, such as FIPB, CCEA and SIA clearances, environmental clearance, techno-economic clearance from Central Electricity Authority, valid licenses from Competent Authorities, no objection certificate from Ministry of Surface Transport, evidence of exports/foreign exchange earnings from the statutory auditor based on the bankers realisation certificate, registration with RBI in case of NBFCs, approval for overseas investment from RBI etc.

(C) Review :

The ECB guidelines and procedures will be periodically reviewed by the Government in the light of prudent management of external debt, changing market conditions, sectoral requirements etc.