ECB for Civil Aviation Sector

Considering the bad conditions in which the civil aviation sector is in India these days, RBI has thrown a lifeline to the sector by allowing them to avail ECBs for working capital purposes. Each airline company can avail USD 300 million each subject to a cap of USD 1 billion for the entire sector in itself. The ECB will be on approval basis. There are few other conditions as well, prominent among them is that repayment of ECB should be out of the foreign exchange earnings, and not from borrowing from the Indian market. A copy of the circular can be found here