Indian companies in the hotel sector (with a total project cost of Rs 250 crore or more), irrespective of their geographical location, have been allowed to tap the external commercial borrowing (ECB) route.

The ECBs will be for repayment of outstanding rupee loan(s) and/or for fresh rupee capital expenditure.

The Reserve Bank of India, in a notification, said the abovementioned companies are eligible borrowers under the ECB policy for repayment of rupee loans and/or fresh rupee capital expenditure.

As per the extant guidelines, only Indian companies in the manufacturing and infrastructure sectors, which are consistent foreign exchange earners, are allowed to go in for ECBs for repayment of outstanding rupee loan(s) taken from the domestic banking system and/or for fresh rupee capital expenditure.