Press Information Bureau

Government of India

Ministry of Tourism

31-January-2013 13:04 IST

Union Tourism Minister Shri Chiranjeevi has welcomed the decision of Reserve Bank of India to allow Indian companies in the hotel sector to avail benefits under the ECB (External Commercial Borrowings) scheme to repay their outstanding rupee loans and or to finance fresh capital expenditure.

In a statement issued here today the Minister said “amended guidelines which came into force with immediate effect will greatly help the Indian companies in the hotel sector as they would now be eligible to borrow under this scheme for projects costing INR 250 crore or more irrespective of geographical location which would make the implementation of hotel projects in the country more viable and cost effective”.

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Samir/rv

External Commercial Borrowing eligibility expanded to let hotel companies refinance rupee debt and fund capital expenditure. Reserve Bank of India amended External Commercial Borrowing guidelines to allow Indian hotel sector companies to borrow under the ECB scheme for repayment of outstanding rupee loans and for financing fresh capital expenditure, subject to a project cost threshold qualifying criterion and without geographic limitation on project location.