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RBI-External Commercial Borrowings (ECB) for Civil Aviation Sector
March, 27th 2014

A.P.(DIR Series) Circular No.113

March 26, 2014


All Category – I Authorised Dealer Banks

Madam / Sir,

External Commercial Borrowings (ECB) for Civil Aviation Sector

Attention of Authorized Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular No. 113 dated April 24, 2012 in terms of which External Commercial Borrowings (ECB) can be raised by airline companies for working capital as a permissible end-use, under the approval route, subject to the conditions stipulated in the said Circular. The scheme was extended till December 31, 2013 vide A.P. (DIR Series) Circular No. 116 dated June 25, 2013.

2. On a review, it has been decided that this scheme of raising ECB for working capital for Civil Aviation Sector will continue till March 31, 2015.

3. All other conditions stipulated in aforesaid Circular dated April 24, 2012 shall remain unchanged.

4. AD Category – I banks may bring the contents of this Circular to the notice of their constituents and customers.

5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals required, if any, under any other law.

Yours faithfully

(Rudra Narayan Kar)
Chief General Manager-In-Charge

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