In order to strengthen the flow of resources to infrastructure sector, the Reserve Bank of India (RBI) has decided to permit holding companies / Core Investment Companies (CICs) coming under the regulatory framework of RBI to raise External Commercial Borrowings (ECBs) under the automatic route/approval route, as the case may be, for project use in Special Purpose Vehicles (SPVs). However, RBI has laid down few conditions to be followed and these modifications to the ECB guidelines will come into force with immediate effect. RBI said that the business activity of the SPV should be in the infrastructure sector.

(Business Standard)