Back to Projects
JOIN WHATSAPP GROUP
Free PSC MCQ 4 Lakhs+
Please Write a Review
Current Affairs 2018 to 2022
PYQ 1200 Q/A Part - 1
PYQ 1200 Q/A Part - 2
PYQ 1200 Q/A Part - 3
PYQ 1200 Q/A Part - 4
PYQ 1200 Q/A Part - 5
Kerala PSC Indian Economy Book Study Materials Page 402
Book's First Page14.22 ndian onom (v) ECBs for interest during construction (iv) Introducing a new ECB scheme of (IDC) that accumulates on a loan during US $10 billion for companies in the the project execution phase for companies manufacturing and infrastructure sectors; in the infrastructure sector would be (v) Permitting the Small Industries permitted. This would be subject to the Development Bank (SIDBI) as an eligible condition that the IDC is capitalised and borrower for accessing ECB for on- is part of the project cost. lending to the micro, small and medium (vi) Renminbi (RMB)—the Chinese currency enterprises (MSMEs); and —was approved as an acceptable (vi) Permitting the National Housing Bank currency for raising ECBs subject to/ (NHB)/Housing Finance Companies to limit of US $ 1 billion within the existing avail themselves of ECBs for financing ECB ceiling (allowed only through the prospective owners of low cost /affordable approval route). housing units. (vii) The existing ECB limits under the (vii) In December 2015, the RBI announced automatic route were enhanced from a new ECB framework which was more US $ 500 million to US$ 750 million attuned to the current economic and for eligible corporates. For borrowers business environment—from regulatory in the services sector, the limit has been perspective, now, the ECBs will have enhanced from US$ 100 million to US$ three main clear-cut categories— 200 million and for NGOs engaged in (a) Medium-term foreign currency- micro-finance activities from the existing denominated ECB; US$ 5 million to US$ 10 million. (b) Long-term foreign currency- Till February 2017, the norms for ECB denominated ECB (with minimum were further simplified and streamlined by the average maturity of 10 years); and government—major steps taken in this regard (c) Indian rupee-denominated ECB. were as given below: The new lenders comprise overseas (i) Enhancing the limit for refinancing rupee regulated financial institutions, sovereign loans through ECB from 25 per cent to wealth funds, pension funds, insurance 40 per cent for Indian companies in the companies, etc. and has an exhaustive power sector; list of permissible end-users with only a (ii) Allowing ECB for capital expenditure on small negative list for long-term foreign the maintenance and operation of toll currency-denominated ECB and INR- systems for roads and highways so long denominated ECB. as they are a part of the original project (viii) In order to facilitate rupee-denominated subject to certain conditions, and also for borrowing from overseas, the government low cost housing projects; decided (December 2015) to put in place (iii) Reducing the withholding tax from 20 a framework for issuance of rupee- per cent to 5 per cent for a period of three denominated overseas bonds (such bonds years (July 2012–June 2015) on interest have got a popular tag of the masala payments on ECBs; bonds).