external commercial borrowings.docx

7/28/2019 External commercial borrowings.docx

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What Makes the Dollar Drop?

When you travel to a foreign country, you will likely need to exchange U.S. dollars to alocal currency to purchase goods and services. The rate at which you can purchase one

currency with another is the exchange rate. Exchange rates can fluctuate over time due toa variety of underlying factors, which can cause certain currencies, like the U.S. dollar, todrop in value relative to other world currencies.

1. Inflation

o Inflation is the rate at which prices are increasing in an economy. When inflationis higher in the U.S. than it is in other countries, it will tend to cause the value ofthe dollar to fall in comparison to the value of other currencies. High inflationerodes the value of a currency. For example, if the U.S. experienced 7 percentinflation for 10 years, $1 would be worth roughly half what it was 10 years ago.

Increase in the Money Supply

o An increase in the money supply can lead to falling dollar values. If the U.S.government decides to print dollars to increase the money supply, dollarsbecome easier to come by, so prices in the economy may increase. In otherwords, printing dollars can lead to inflation: the more plentiful an asset is, theless valuable it tends to be.

Demand for Dollars

o The value of any asset, including currency, is ultimately determined by thedemand for the asset. If everyone wants to hold dollars, dollars will be valuable,while dollars will tend to fall in value if nobody wants to hold them. Whenconsumer confidence in the U.S. economy is low, investors may divert moneyto assets that are not tied to the dollar. For example, an investor might buy gold,oil, stocks in foreign countries or foreign currencies if he thinks the U.S.economy and dollar will perform poorly. Falling demand for dollars andincreasing demand for other world currencies can make the dollar fall in value.

Interest Rates

o Interest rate differences between countries can impact the value of currencies.When U.S. interest rates are low, demand for dollars may fall because itbecomes relatively less attractive to save at American financial institutions. Forexample, if American banks offered 1 percent interest on savings deposits whilebanks in the U.K. offered 5 percent interest, foreign and American savers mightdecide to convert their dollars into pounds and save at banks in the U.K. rather


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than saving at banks in the U.S. Low demand for dollars would lead to lowerdollar values

What Factors Cause Exchange Rates toFluctuate?

What Factors Cause Exchange Rates to Fluctuate?

The foreign exchange market, or forex, is one of the largest markets in the world, and is inconstant flux. When it's night in one part of the world, it's morning in another, andexchange rates fluctuate as currencies are bought and sold. With trillions of dollars' worthof currency trading each day, the currency market is one of the most important in aneconomy of global trade, and exchange rates fluctuate in response to a variety of factorsranging from economic data to changes in interest rates.

1. Identification

o An exchange rate is a ratio that expresses the value of one currency in terms ofanother. An individual exchange rate is also called a currency cross or pair, andis identified by the abbreviations of the currencies involved. For example,EUR/USD is the number of dollars (USD) that can be purchased by one euro(EUR). Indirect quotation occurs when the home currency is first in the pair.Direct quotation is when a foreign currency is listed first. The major currencypairs are EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD and USD/CAD.


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History

o Originally, currencies were redeemable in gold, silver or some other commodityof value. But demand for currency usually outstrips the available supply of suchcommodities, and lending institutions historically chased higher profits by lending

more currency than they had in reserve. In the 20th century, the United Statesand other major countries abandoned the gold standard, leaving currenciesessentially without intrinsic value other than the gross domestic product of eachcountry.

Function

o In the most basic sense, currencies fluctuate because of changes in supply anddemand. Supply of currency is usually based on the creation of money bynational central banks, through a variety of means. The demand for currency can

either be transactional, meaning it is needed for actual use in an economy, orspeculative, meaning it is purchased simply because it is expected to appreciatein relation to other currencies.

Features

o The transactional demand for a currency is related to the economic growth of acountry, its rate of employment, and the velocity of money, which is the rate atwhich money moves through the economy from one transaction to another.Speculative demand for currency is based on perceptions of the degree to whichit will retain its value. This is related in part to expectations of future economic

activity, but also to anticipated inflation, which occurs when the supply outstripsdemand and sends the value of the currency down.

Considerations

o One of the most direct influences on exchange rates is the interest ratedifferentials between different countries. Central banks attempt to manipulatedemand for their currency by raising or lowering benchmark interest rates, whichrepresent the cost of borrowing in the currency. The variation in interest ratesaround the world produces a type of speculative demand called a carry trade,

where money is borrowed in a low-interest currency and converted and lent in ahigh-interest currency. The carry trader is able to keep the difference in the ratesas profit, but runs the risk that changes in the relative interest rates andexchange rates will erode that profit.


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Fluctuations in Indias Rupee Rate and itsEconomic ImpactPosted onDecember 5, 2011byIndia Briefing

Dec. 5 After depreciating to a record low of 52.73 against the U.S. dollar on November

22, the Indian rupee (INR) rose in value to 51.206 per dollar on Friday to complete the

currencys first weekly advance since October.

The Indian rupee is under great stress as overseas investors are paring their exposure

to Asias third-largest economy amid international uncertainty and mounting worries

over the domestic economy.

On November 21 alone, overseas funds sold more than US$500 million worth of Indian-listed shares over the five trading sessions, reducing net inflows for 2011 to under

US$300 million a tiny sum compared with the record investments of more than US$29

billion experienced in 2010. The rupee has lost more than 10 percent of its value this

year, making it one of the worst performing currencies in Asia.

The rupees modest 2.1 percent advance against the dollar last week occurred as six

monetary authorities, led by the U.S. Federal Reserve, agreed to lower the interest rate

on dollar-liquidity swap lines.

The premium banks pay to borrow dollars overnight from central banks will fall by half a

percentage point to 50 basis points, the Fed said. It coordinated the move with the

European Central Bank and monetary authorities in Canada, Switzerland, Japan and

the U.K.

Sentiment has improved slightly after the central banks actions, Vikas Babu, a

Mumbai-based currency trader at state-owned Andhra Bank, told Bloomberg News.

This is unlikely to last long as only the symptoms of the crisis are being tackled, and I

expect dollar-buying to resume soon.

The exchange rate of the Indian rupee is dependent upon the market conditions.

Though, in order to sustain effective exchange rates, the Reserve Bank of India (RBI)

actively trades in the US$/INR currency market. The RBI also intervenes in the currency

markets to maintain low volatility in exchange rates and remove excess liquidity from

the economy. The rupee is pegged by the Bhutanese ngultrum at par and with the

Nepali rupee at INR1 to NPR1.6.
http://www.india-briefing.com/news/fluctuations-indias-rupee-rate-impact-5125.html/http://www.india-briefing.com/news/fluctuations-indias-rupee-rate-impact-5125.html/http://www.india-briefing.com/news/fluctuations-indias-rupee-rate-impact-5125.html/http://www.india-briefing.com/news/author/india-briefing/http://www.india-briefing.com/news/author/india-briefing/http://www.india-briefing.com/news/author/india-briefing/http://www.india-briefing.com/news/author/india-briefing/http://www.india-briefing.com/news/fluctuations-indias-rupee-rate-impact-5125.html/


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India has a managed floating exchange rate system. This means that the Indian

government intervenes only if the exchange rate gets out of hand by increasing or

reducing the money supply as the circumstances demand.

Impact on economy

Rupee appreciation makes imports cheaper and exports more expensive. According to

intelligence reports by the Associated Chambers of Commerce and Industry of India,

sectors like petroleum and petroleum products, drugs and pharmaceuticals and

engineering goods which have import inputs of as much as 77 percent, 19 percent

and 21 percent, respectively will gain if the rupee appreciates. They would have to

pay less for the imported raw materials which would increase their profit margins.

Likewise, a depreciating rupee makes exports cheaper and imports expensive. So, it is

good news for industries such as IT, textiles, hotels and tourism which generate incomemainly from exporting their products or services. Rupee depreciation makes Indian

goods and services cheaper for overseas buyers, thus leading to increases in demand

and higher revenue generation. The foreign tourists would find it cost effective to come

to India, therefore increasing the business of hotel, tours and travel companies.

Indias IT sector is dependent on foreign clients, especially the United States, for more

than 70 percent of its revenue. When an IT company gets a project from a client, it pre-

decides on the length of the contract and the cost of the project. The contracts with U.S.

clients are usually quoted in U.S. dollar terms. So, the fluctuation in the exchange rate

can bring about a considerable difference in the performance of a company.

Some companies undertake a range of measures like hedging exchange risks using

forwards and futures contracts. This helps in mitigating some of the losses due to

exchange rate fluctuations, but none-the-less the impact is substantial.

The exchange rate is a significant tool that can be used to examine many key

industries; with fluctuations potentially having a serious impact on the economy,

industries, companies, and foreign investors. Rupee appreciation is generally helpful for

industries which rely closely on imported inputs while depreciation of the rupee iswelcome news for industries which are exporting a majority of their products.


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External commercial borrowing (India)

An external commercial borrowing (ECB) is an instrument used in India to facilitate the accessto foreign money by Indian corporations and PSUs (public sectorundertakings). ECBs include

commercial bankloans, buyers' credit, suppliers' credit, securitised instruments such as floatingratenotes and fixed rate bonds etc., credit from official export credit agenciesand commercialborrowings from the private sector window of multilateral financial Institutions such asInternational Finance Corporation(Washington), ADB, AFIC, CDC, etc. ECBs cannot be usedfor investment instock marketor speculation inreal estate. The DEA (Department of EconomicAffairs), Ministry of Finance,Government of Indiaalong withReserve Bank of India, monitorsand regulates ECB guidelines and policies. For infrastructure and greenfield projects, funding upto 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs isallowed. Recently Government of India has increased limits on RBI to up to $4[1]0 billions andallowed borrowings in Chinese currency Renminbi.

Borrowers can use 25 per cent of the ECB to repay rupee debt and the remaining 75 per centshould be used for new projects. A borrower can not refinance its existing rupee loan throughECB. The money raised through ECB is cheaper given near-zero interest rates in the US andEurope, Indian companies can repay their existing expensive loans from that.

The ministry has not put any ceiling on individual companies for using renminbi as currency forECB. Even though the overall limit for permitting it under ECB is only $1 billion, the officialsdenied possibilities of a single company using the entire amount as it would come underapproval route.

The cost of borrowing in Renminbi is far less, said a finance ministry official. Companies go

for it as it is on easier terms. We are getting their (Chinas) money cheap.

The limit for automatic approval has also been increased from $100 million to $200 million forthe services sector (hospitals, tourism) and from $5 million to $10 million for non-governmentorganisations and microfinance institutions. The decisions will come into effect through anotification by RBI.

The Reserve Bank of India on Tuesday said the Small Industries Development Bank of India(SIDBI) can tap the external commercial borrowing route for on-lending to the micro, small andmedium enterprise (MSME) sector.

For on-lending to the MSME borrowers, the RBI has stipulated that SIDBI should hedge the

foreign currency risk in full in case the on-lending is in rupees.

On-lending in foreign currency will only be to those MSMEs which have a natural hedge by wayof foreign exchange earnings.

Availment of ECB by SIDBI, including the outstanding ECBs, up to 50 per cent of owned funds,for on-lending to the MSME sector, will be under the automatic route and beyond 50 per cent of
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owned funds, the availment will be under the approval route, subject to a ceiling of $500 millionper financial year.

Keywords:Reserve Bank of India, Small Industries Development Bank of India, SIDBI, externalcommercial borrowingS, micro, small and medium enterpriseS, MSME, foreign currency risk

A PRESENTATION ON EXTERNAL COMMERCIAL BORROWINGS :

A PRESENTATION ON EXTERNAL COMMERCIAL BORROWINGS Presentation by: SPC Consulting Services Pvt.

Ltd.

What is ECB? :

What is ECB? Source of funds for corporates from abroad with advantage of

lower rates of interest prevailing in the international financial markets

longer maturity period for financing expansion of existing capacity as well as for fresh investment Defined as to

include commercial loans [in the form of bank loans, buyers credit, suppliers credit, securitised instruments (e.g.

floating rate notes and fixed rate bonds, CP)] availed from non-resident lenders with minimum average maturity of 3

years

Statutory Provisions :

Statutory Provisions The set of rules that governs foreign investment in form of borrowings is called ECB Regulations

by MOF Section 6(3)(d) of FEMA1999 Section 6 of Notification no FEMA 3 Dated 3-5-2000 and amended from TIME

TO TIME Section 5(3) of ABOVE NOTIFICATION-IMPORT CREDIT Section 6(2) PUTS CAP ON TOTAL ECB

Purpose of ECB :

Purpose of ECB Sources of Finance for Indian Corporate For expansion of existing capacity For fresh Investment To

give greater priority on Infrastructure, Power, Oil Exploration, Telecom, Railways, Roads, Bridges, etc. To give priority

medium and small scale units To be utilized for foreign exchange costs of capital goods and services

Permitted Routes for ECB :

- Automatic Route

- Approval Route

Slide 6:
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Automatic Route Indian Companies except financial intermediaries (such as Banks, Financial Institutions (FIs),

Housing Finance companies and NBFCs). Units in Special Economic Zones (SEZ) are allowed to borrow funds

through ECBs for their own requirements. (Individuals, Trusts and Non-Profit making organisations are not eligible to

raise ECBs). Approval Route Financial Institutions dealing exclusively with infrastructure or export finance Banks and

Financial Institutions which participated in the textile or steel sector restructuring package ECBs with minimum

average maturity of 5 years by NBFCs to finance import of infrastructure equipment for leasing to infrastructure

projects. FCCBs by housing finance companies satisfying the prescribed criteria SPVs, or any other entity notified byRBI, set up to finance infrastructure companies / projects. Multi-State Co-operative Societies engaged in

manufacturing activities. Corporates engaged in industrial & infrastructure sector NGOs engaged in micro finance

activities satisfying the criteria laid down Corporates in service sector for import of capital goods.

ELIGIBLE BORROWERS :

ELIGIBLE BORROWERS ECBs under the automatic route :-Corporates incorporated under Companies Act NGOs

engaged in micro finance activities are eligible subject to: - at least 3 years of borrowing relationship with an

Authorised Dealer. Authorised Dealer should certify fit and proper due diligence certificate about the management of

the NGO Ineligible intermediaries such as Banks, Financial Institutions, housing Finance Companies and NBFCs.

ELIGIBLE BORROWERS (Contd..) :

ELIGIBLE BORROWERS (Contd..) ECBs under the approval route:- Financial Institutions dealing exclusively with

infrastructure or export finance such as IDFC, IL&FS, Power Finance Corporation, Power Trading Corporation,

IRCON and EXIM Bank. ECBs with minimum average maturity of 5 years can be raised by NBFCs from multilateral

financial institutions. Corporates in service sector viz., hotels, hospitals and software companies can also avail ECBs

up to USD 100 million in each financial year for import of capital goods.

ELIGIBLE BORROWERS (Contd..) :

ELIGIBLE BORROWERS (Contd..) ECBs under the approval route:-Multi-State Co-operative Societies engaged in

manufacturing activities. Non-Government Organisations (NGOs) engaged in micro finance activities having

satisfactory borrowing relationship for at least 3 years with a scheduled commercial bank, which is authorised to deal

in foreign exchange, can also raise ECBs.

Recognised lenders :

Recognised lenders International Banks IFC,ADB,CDC etc. Multilaterals Export Credit Agencies Suppliers ofEquipments, Foreign collaborators and Foreign Equity Holders, Overseas Organisation lenders to NGOs

Basic Financing Structure :


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Basic Financing Structure Investments Equity Long Term Borrowings Short Term Borrowings FDI FEM (Borrowing or

Lending in Foreign Exchange) Regulations, 2000 Debentures Convertible Preference Shares Convertible Debentures

Unfunded Loans ECBs

Modes of Raising ECBs :

Modes of Raising ECBs Foreign currency loan raised by residents from recognised lenders The ambit of ECB is wide.

It recognizes simple form of credit as suppliers credit as well as sophisticated financial products as securitisation

instruments. Basically ECB suggests any kind of funding other than Equity (considered foreign direct investment) be it

Bonds, Credit notes, Asset Backed Securities, Mortgage Backed Securities or anything of that nature, satisfying the

norms of the ECB regulations.

Modes of Raising ECBs - (Contd.) :

Modes of Raising ECBs - (Contd.) Commercial Bank Loans : in the form of term loans from banks outside IndiaBuyer's Credit Supplier's Credit Securitised instruments such as Floating Rate Notes (FRNs), Fixed Rate Bonds

(FRBs), Syndicated Loans etc. Syndicated Loan, CP Credit from official export credit agencies Commercial

borrowings from the private sector window of multilateral financial institutions such as International Finance

Corporation (Washington), ADB, AFIC, CDC,


Modes of Raising ECBs - (Contd.) Loan from foreign collaborator/equity holder, etc and corporate/institutions with a

good credit rating from internationally recognised credit rating agency Lines of Credit from foreign banks and financial

institutions Financial Leases Import Loans Investment by Foreign Institutional Investors (FIIs) in dedicated debt funds

External assistance, NRI deposits, short-term credit and Rupee debt Foreign Currency Convertible Bonds


Modes of Raising ECBs - (Contd.) Non convertible or optionally convertible or partially convertible debentures

Redeemable preference shares are considered as part of ECBs - As per Indian corporate law, all preference shares

are mandatorily redeemable unless they are convertible - Hence, convertible preference shares will not be ECB (will

be Foreign Direct Investment) - Non convertible, partly convertible or optionally convertible preference shares are

treated as ECBs Bonds, Credit notes, Asset Backed Securities, Mortgage Backed securities - Not expressly covered

but Guidelines refer to securitised notes

Amount and Maturity of ECBs :

Amount and Maturity of ECBs UPTO $20 mn-------- MIN.AVG.MATURITY OF THREE YEARS $20mn TO $500mn-----

Min.avg.mty 5years Maximum amount in a financial year$500mn ECB upto$20mn can have call/put option AFTER 3

YEARS


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All-In-Cost Ceilings :

All-In-Cost Ceilings All-in-cost includes interest, fees, expenses in foreign currency, except commitment fee, pre

payment fee, withholding taxes and all fees payable in INRS MAMP All-in-cost LIBOR+ of respective currency 3 to 5

years 300bps Above 5 years 500bps

End-User-Criteria :

End-User-Criteria Import of capital goods New projects Modernization/ expansion of existing projects in real sector

including infrastructure, S.M.Es Infrastructure means sectors in Power, Telecom, Railways, roads and bridges, ports,

industrial parks, water supply, sanitation, sewerage Overseas direct investment in J.V / W.O.S subject to FEMA 120

Acquisition of shares in disinvestment process-first stage and mandatory 2 stage NGOS can use for micro finance

lending to self help groups Bonafide micro credit purposes

Prohibited Users :

Prohibited Users On-lending or investment in capital market or acquiring a coy in India Real estate(except

development of integrated township vide G.O.I. Press note 3 dated 4-1-2002 Working capital General corporate

purpose Repayment of existing rupee loans Guarantees Prohibited Guarantees, Letter of Credit, Standby L/C,

Undertaking, Comfort Letter Prohibition applies to Banks, FIS, NBFCS

Security :

Security Choice of borrower and lender Compliance with REG.8 FEMA21 and REG.3 FEMA20, that is prior approval

of RBI required for creation of charge immovable properties and shares in India

Parking of Funds :

Parking of Funds Compulsory to park outside pending actual requirement in India Parked funds can be invested in

products of Banks rated AA- BY S&P or AA 3 by moodys Deposits with overseas branches of A.D Treasury bills of 1

year maturity Liquidity to meet the use in India

Trade Credits :

Trade Credits Credits for imports Credit provided by overseas Supplier, Bank, Financial Institution. Period-original

maturity- less than 3 years Suppliers Credit or Buyers Credit Buyers Credit and Suppliers Credit of more than 3 years

will be treared as ECB


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Quantum and Maturity Period :

Quantum and Maturity Period Import of items allowed under EXIM policy A.D.s can allow upto $ 20 mn upto a period

of one year(from date of shipment) For import of capital goods A.D.s can allow upto $20mn with maturity of over 1

year upto 3 years No roll overs/extension can be allowed beyond permissible periods Amounts above $20 mn apply

to RBI

All-In-Cost-Ceilings :

All-In-Cost-Ceilings Upto one year libor+50 bps 1 to 3 years libor+125 bps All-in- cost includes arranger fees, upfront

fees, MNGMT fees, handling/processing charges, out of pocket and legal expenses

Guarantees :

Guarantees A.D.S should take prior approval of regional offices of RBI for issue of guarantees, letter of comfort etc

Reporting to RBI Particulars of ECB in form T. C to be reported to DEAP, Mumbai Monthly-before 10th of succeeding

month Each trade credit to be given a unique identification number by A.D.

Why ECB is attractive? :

Why ECB is attractive? Investor - ECB is for specific period, which can be as short as three years - Fixed Return,

usually the rates of interest are fixed - The interest and the borrowed amount are repatriable - No owners risk as in

case of Equity Investment Borrower - No dilution in ownership - Considerably large funds can be raised as per

requirements of borrower - Usually only a fixed rate of interest is to be paid - Easy Availability of funds because ECB

is more appealing to Investors

Data Bank :

Data Bank The information regarding Approval, Utilization, Remittance & Other relevant details please visit

http://www.rbi.org.in

Conclusion :

Conclusion External Commercial Borrowings (ECBs) occupy a very important position as a source of funds for

Corporate. Thus, it is to be maintained within prudent limits for total external borrowings and to provide flexibility to

Corporate in external borrowings and that is reflected in its guidelines. However, the main purpose of ECB is to

encourage borrowings which provides basis for strongest economy. This is amply clear from the fact that the funds

raised through ECBs in October 2008 were USD 1.12 billion as compared to USD 2.80 billion raised in September

2008. Nevertheless the significance of ECBs as a source of raising finance can not be undermined. Thus according

to some Maven: ECB is not only three letter word but lifeline of corporate world


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Data on ECB/FCCB for the month of September 2012

I AUTOMATIC ROUTE*

ECB/

FCCB

Borrower Equivalent

Amount in USD

Purpose Maturity Perio

(Appx)

1 ECB Quadrant EPP SurlonIndia Ltd. #

96,318 Rupee ExpenditureLoc.CG

10 Years 5Months

2 ECB Quadrant EPP SurlonIndia Ltd.#

77,054 Import of CapitalGoods

8 Years 8Months

3 ECB Quadrant EPP SurlonIndia Ltd. #

128,424 Modernisation 6 Years 2Months

4 ECB Indosolar Limited # 999,965 Working Capital 10 Years 1Month

5 ECB HF Metalart PrivateLimited #

462,687 Other 9 Years 1 Mon

6 ECB Samhita CommunityDevelopment Services 892,858 Micro Finance 4 Years 11Months

7 ECB Heubach Colour Pvt.Ltd. 3,800,000 Modernisation 9 Years 10Months

8 ECB Marquardt India Pvt. Ltd. 751,066 New Project 7 Years 2Months

9 ECB Jaiprakash AssociatesLtd.

150,000,000 Redemption of FCCBs 7 Years 1 Mon

10 ECB Anil Limited 5,000,000 Import of CapitalGoods

5 Years 10Months

11 ECB Punarnava Rasayan Pvt

Ltd

98,500 New Project 7 Years 1 Mon

12 ECB Bilt Graphic PaperProducts Ltd

25,000,000 Modernisation 7 Years 1 Mon

13 ECB Suven Life SciencesLimited

6,000,000 Modernisation 5 Years 1 Mon

14 ECB Erandia Resorts Pvt Ltd 4,494,823 Modernisation 5 Years 9Months

15 ECB Star Coolers &Condensers Pvt. Ltd

241,367 Modernisation 5 Years

16 ECB Dayco Vikas PowerTransmission pvt. Ltd.

1,284,235 Modernisation 5 Years 7Months

17 ECB IPCA Laboratories Ltd. 10,000,000 Modernisation 5 Years18 ECB Dayco Vikas Power

Transmission pvt. Ltd.513,694 Modernisation 5 Years 7

Months

19 ECB IPCA Laboratories Ltd. 10,000,000 Modernisation 6 Years

20 ECB AIA Engineering Limited 20,000,000 Import of CapitalGoods

5 Years


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21 ECB GAIL (India) Ltd. 300,000,000 Rupee ExpenditureLoc.CG

6 Years 3Months

22 ECB Alpla India Pvt.Ltd. 1,155,812 New Project 6 Years 1 Mon

23 ECB The Supreme IndustriesLtd.

20,000,000 Import of CapitalGoods

5 Years

24 ECB Denso Haryana Pvt. Ltd. 23,807,126 Modernisation 5 Years25 ECB Perrigo API India Pvt.

Ltd.15,000,000 Import of Capital

Goods9 Years 8Months

26 ECB Skaps Industries IndiaPrivate Limited


5 Years 9Months

27 ECB Hindustan Polyamides &Fibres Ltd.

4,000,000 Rupee ExpenditureLoc.CG

5 Years

28 ECB Apicore PharmaceuticalsPvt. Ltd.

2,000,000 New Project 5 Years

29 FCCB Amtek India Ltd. 70,000,000 Modernisation 5 Years

30 ECB Angerlehner CompositesPvt. Ltd.


4 Years

31 ECB Toto India industries Pvt.Ltd

19,843,792 New Project 10 Years 1Month

32 ECB Rieter India Pvt Ltd. 4,254,692 Rupee ExpenditureLoc.CG

5 Years

33 ECB JSW Steel Ltd. 19,622,250 Import of CapitalGoods

11 Years 6Months

34 ECB Laxmi Organic IndustriesLtd.

10,000,000 New Project 7 Years 9Months

35 ECB Inox Renewables

(Jaiselmer) Limited

50,000,000 New Project 14 Years 9

Months36 ECB Coromandel

International Ltd.20,000,000 Rupee Expenditure

Loc.CG3 Years 6Months

37 ECB Larsen & Toubro Limited 20,000,000 Rupee ExpenditureLoc.CG

5 Years

38 ECB Godrej Industries Ltd. 20,000,000 Modernisation 5 Years

39 ECB Fresenius Kabi IndiaPvt.Ltd.


40 ECB Amtek Auto Ltd. 60,000,000 Rupee ExpenditureLoc.CG

6 Years 4Months

41 ECB Essar Steel India Limited 160,000,000 Rupee Expenditure

Loc.CG

10 Years 1

Month

42 ECB Blue Ridge Hotels PrivateLimited #

19,000,000 Other 7 Years 3Months

43 ECB Welspun Corp Ltd 40,000,000 Redemption of FCCBs 7 Years 1 Mon

44 ECB Bellsonica AutoComponent India Pvt.Ltd

17,283,303 Modernisation 12 Years 6Months


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45 ECB Gayatri Projects Ltd. 25,000,000 Redemption of FCCBs 6 Years 10Months

46 ECB Inabensa Bharat PrivateLtd


47 ECB AT India Auto Parts Pvt.

Ltd.

5,493,952 New Project 4 Years 9

Months48 ECB Chalet Hotels Ltd. 30,000,000 New Project 5 Years 7

Months

49 ECB Tarapur Textiles Park Ltd 10,910,000 Industrial Parks 7 Years 7Months

50 ECB Maroli NH Road Pvt.Ltd. 4,500,000 New Project 12 Years 1Month

51 ECB Buckman Laboratories(India) Pvt. Ltd.

450,000 Modernisation 4 Years 3Months

52 ECB NTPC Ltd. 500,000,000 Power 10 Years 1Month

53 ECB Tata Steel Ltd. 15,337,299 Import of CapitalGoods

11 Years 5Months

54 ECB Kasturi & Sons Ltd. # 12,514,392 Import of CapitalGoods

6 Years 2Months

55 ECB Eastern HatcheriesPrivate Limited

4,545,455 Modernisation 7 Years

56 ECB Motherson Sumi SystemsLtd.


6 Years

57 ECB Omya India Pvt. Ltd. 3,400,000 Rupee ExpenditureLoc.CG

5 Years

58 ECB Jakson Power Pvt. Ltd. 20,303,724 Rupee Expenditure

Loc.CG

7 Years 1 Mon

59 ECB Anupam-MHI IndustriesLimited

9,000,000 New Project 8 Years 1 Mon

60 ECB Atul Ltd. 10,000,000 Modernisation 5 Years

61 ECB Toyo Ink India Pvt. ltd. 921,776 New Project 5 Years

62 ECB Tag Offshore Ltd. 23,500,000 Import of CapitalGoods

8 Years 1 Mon

63 ECB GMR Kamalanga EnergyLimited

56,000,000 Power 5 Years 2Months

64 ECB Jericho Chemicals Pvt.

Ltd.

3,600,000 Rupee Expenditure

Loc.CG

5 Years 1 Mon

65 ECB Dia Aluminium India Pvt.Ltd.

213,000 Import of CapitalGoods

3 Years

66 ECB Mobis India Limited 20,000,000 New Project 3 Years 6Months

67 ECB Steelcast Ltd. 5,000,000 Import of CapitalGoods

5 Years


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68 ECB Pioneer Elastic (India)Private Limited

500,000 New Project 5 Years

69 ECB Toyoda Gosai IndiaPrivate Limited


5 Years

70 ECB Sata Vikas India Pvt. Ltd. 513,694 Modernisation 6 Years 1 Mon

71 ECB General Motors IndiaPvt. Ltd.


8 Years 10Months

72 ECB Kpit CumminsInfosystems Ltd.

20,000,000 Overseas Acquisition 5 Years

73 ECB P+W silo System IndiaPvt. Ltd. #


5 Years 5Months

74 ECB Tetra Pak India Pvt. Ltd. 37,500,000 Import of CapitalGoods

7 Years 4Months

75 ECB Ramgad Minerals andMining Ltd


76 ECB Jakson Power Pvt. Ltd. 8,121,490 Rupee ExpenditureLoc.CG

7 Years 1 Mon

Automatic Route Total 2,087,634,139

* Based on Form 83 submitted for allotment of Loan Registration Number# Clarification sought from the company for conformity with the end-use requirement, eligibility of tborrower and other parameter of ECB

II APPROVAL ROUTE*

1 FCCB Jaiprakash AssociatesLtd.

150,000,000 Redemption of FCCBs 5 Years

2 ECB Interglobe AviationLimited

100,000,000 Other 10 Years 1Month

3 ECB The Andhra PradeshPaper Mills Ltd 40,000,000 Modernisation 8 Years 7Months

4 ECB DOCOMO InterTouch(India) Pvt. Ltd.


3 Years 3Months

5 ECB Rural ElectrificationCorporation Ltd.

250,000,000 Onward/Sub-lending. 3 Years 2Months

6 ECB Tasty Bite Eatables Ltd. 4,000,000 Modernisation 9 Years 11Months

7 ECB Intuit India ProductDev.Centre Pvt. Ltd


5 Years 5Months

8 ECB Nestle R & D Centre

India Pvt.Ltd.

21,975,808 Rupee Expenditure

Loc.CG

5 Years 4

Months9 ECB Jhajjar Power Ltd. 65,000,000 Refinancing of rupee

loan11 Years 3Months

10 ECB Essar Steel India Limited 40,000,000 Refinancing of rupeeloan

10 Years 1Month

Approval Route Total 688,373,323

Grand Total 2,776,007,462


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external commercial borrowings.docx

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