Long-term borrowings defined as loans from government, eligible financial institutions or foreign debt for capital plant repayable over seven years. Definition of Long-term borrowings in Explanation (c) to sub section (3) of section 35D treats as long term: loans from Government, specified financial institutions or banks eligible under clause (viii) of sub section (1) of section 36; and foreign borrowings or debt incurred for purchase outside India of capital plant and machinery where repayment terms extend for not less than seven years.