19th September 2013
RBI expanded Infrastructure definition for External Commercial Borrowings
The Reserve Bank of India (RBI) has expanded definition of the infrastructure sector for raising
funds through External Commercial Borrowings (ECBs).
Taking into account a harmonised master list of infrastructure sub-sectors, it has been decided to
expand the existing definition for infrastructure sector for the purpose of availing ECBs, said in a
notification.
As per the 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.
The hotel sector will include 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.
The notification issued by RBI in this regard is attached herewith for your information.