Mumbai, April 24:
The country's struggling aviation sector has been thrown another lifeline.
The RBI has allowed companies in the sector to resort to External Commercial Borrowing (ECB) for working capital purposes.
The ECB will be allowed to the airline companies based on the cash
flow, foreign exchange earnings and their capability to service the
debt, according to a RBI notification.
The RBI has given aviation companies time up to May 2014 to raise funds through the ECB route.
The ECB can be raised with a minimum average maturity period of three years.
The overall ECB ceiling for the entire civil aviation sector would
be $1 billion and the maximum permissible ECB that can be utilised by an
individual airline company will be $300 million.
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