External Commercial Borrowings (ECB) Policy for 2G spectrum allocation

External Commercial Borrowings policy relaxed for spectrum bidders allowing refinancing of rupee loans and bridge finance under automatic route.

Successful 2G spectrum bidders may refinance rupee loans used for upfront payments with long term ECBs under the automatic route if raised within eighteen months, with the designated AD Category I bank evidencing payment and monitoring end use; short term bridge finance in foreign currency is permitted under the automatic route replaceable by long term ECB within eighteen months subject to ECB guidelines; ECB from an ultimate parent is allowed without a maximum liability equity ratio provided the lender holds at least twenty five percent paid up equity. Other ECB parameters remain unchanged.