Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2009 - Amendment in schedule I and schedule II

Notification No. G.S.R. 547(E), [No. FEMA, 194/2009-RB], dated 17-6-2009

In exercise of the powers conferred by clause (d) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA 3/2000-RB dated May 3, 2000), namely :—

1. Short title and commencement.— (a) These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2009.

(b) They shall come into force from the dates specified in these Regulations.^*

2. Amendment of the Regulations.—In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA 3/2000-RB, dated May 3, 2000) (hereinafter referred to as 'the principal regulations'),—

(A) In Schedule I in paragraph (1).—

(a) in sub-paragraph (iv)

(i) for clause AA, the following shall be substituted and shall be deemed to have been substituted with effect from 29th day of May, 2008, namely :—

"(AA) Borrowings in foreign exchange per borrower company per financial year up to such amounts not exceeding US Dollars 500 million or its equivalent as directed by the Reserve Bank from time to time shall be permitted for such permissible end-uses as indicated by Reserve Bank from time to time".

(ii) in sub-paragraph (A), in clause (a), for 'Explanation' the following shall be substituted and deemed to have been substituted with effect from the 8th day of October, 2008, namely :—

"Explanation : The following sectors will qualify as infrastructure sectors, namely : (i) Power, (ii) Telecommunication, (iii) Railways, (iv) Road including Bridges, (v) Sea Port and Airport, (vi) Industrial Parks, (vii) Urban Infrastructure (water supply, sanitation and sewage projects) and (viii) Mining, Exploration and Refining".

(b) for sub-paragraph (ix) the following shall be substituted and shall be deemed to have been substituted with effect from 22nd day of October, 2008, namely :—

"(ix) Parking of loan amount

The proceeds of borrowings in foreign exchange availed under the schedule may, pending utilisation for permissible end-uses, be parked abroad or in India as directed by the Reserve Bank from time to time".

(B) In Schedule II, in paragraph (3), in sub-paragraph (iii),

(i) in sub-paragraph (A) in clause (a) for 'Explanation' the following shall be substituted and shall be deemed to have been substituted with effect from the 8th day of October, 2008, namely :—

"Explanation : The following sectors will qualify as infrastructure sectors, namely : (i) Power, (ii) Telecommunication, (iii) Railways, (iv) Road including Bridges, (v) Sea Port and Airport (vi) Industrial Parks, (vii) Urban Infrastructure (water supply, sanitation and sewage projects) and (viii) Mining, Exploration and Refining".

(ii) clause AA shall be substituted and deemed to have been substituted with effect from the 29th day of May, 2008.

"(AA) Borrowings in foreign exchange per borrower company per financial year up to such amounts as directed by the Reserve Bank from time to time shall be permitted for such permissible end-uses as indicated by Reserve Bank from time to time".

(iii) for sub-paragraph (viii), the following shall be substituted and shall be deemed to have been substituted with effect from the 22nd day of October, 2008, namely :—

"Parking of loan amount

[F. No. 1/23/EM/2000-Vol.-IV]