With an intension to raise funds through external commercial borrowings (ECBs) the Reserve Bank of India (RBI) on September 18 expanded the definition of the infrastructure sector. The existing definition will be expanded for infrastructure sector for the purpose of availing ECBs, the apex bank said in a notification.
As per the RBI liberalised definition, energy sector would include electricity generation, electricity transmission, electricity distribution and oil pipelines, it said. With regard to communications, the RBI said that mobile telephony services or companies providing cellular services, fixed network telecom and telecom towers will fall under the infrastructure definition and would be eligible to borrow fund through ECB window.
Water and sanitation sector will include water supply pipelines, solid waste management, water treatment plants and sewage projects. Hospitals will include medical colleges and para medical training institutes.
In the hotel sector, hotels with fixed capital investment of Rs 200 crore and above; convention centres with fixed capital investment of Rs. 300 crore and above, and three star or higher category classified hotels located outside cities with population of more than 1 million (fixed capital investment is excluding of land value). Mining, exploration and refining are also part of the expanded infrastructure definition.
All other aspects of ECB policy will remain unchanged, the apex bank clarified.
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