- The Reserve Bank of India (RBI) has allowed state-owned oil companies namely Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd to borrow long term working capital from overseas.
- These companies will be allowed to raise up to USD 10 billion external debt for working capital needs with a minimum average maturity period of 3 or 5 years under the automatic route.
- Till now oil marketing companies were not allowed to raise external commercial borrowing (ECB) for working capital needs on a long-term basis.
Points to Remember:
- How many oil companies have been allowed to raise ECB from overseas
- What is the maximum amount of ECB
- What is the tenure for the ECB