External commercial borrowings for working capital permitted for civil aviation under approval route with eligibility and repayment conditions. ECB are permitted for working capital in the civil aviation sector under the approval route for airlines holding a scheduled operator permit, subject to assessment of cash flow, foreign exchange earnings and debt servicing capability. Such ECBs must be raised within twelve months, have a minimum average maturity of three years, comply with sectoral and individual caps, and be supported by a chartered accountant's certificate of requirement and projected forex cash flows. ECBs for working capital or refinancing are not roll overable and must be repaid only from the borrower's foreign exchange earnings.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
External commercial borrowings for working capital permitted for civil aviation under approval route with eligibility and repayment conditions.
ECB are permitted for working capital in the civil aviation sector under the approval route for airlines holding a scheduled operator permit, subject to assessment of cash flow, foreign exchange earnings and debt servicing capability. Such ECBs must be raised within twelve months, have a minimum average maturity of three years, comply with sectoral and individual caps, and be supported by a chartered accountant's certificate of requirement and projected forex cash flows. ECBs for working capital or refinancing are not roll overable and must be repaid only from the borrower's foreign exchange earnings.
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