Delhi Mumbai Industrial Corridor project may get nod to access external commercial borrowings

MUMBAI: India is likely to allow the Delhi Mumbai Industrial Corridor project to raise money via external commercial borrowings (ECB) to fund the ambitious Rs 18,500-crore project after the Japanese government sought changes in the rules.

The government has allowed Japan to pick up 26 per cent stake in the project. Yukio Edano, Japanese minister of economy, trade and industry (METI), discussed his government's reservation regarding the end use of external commercial borrowings with his Indian counterpart at the sidelines of the 44th ASEAN Economic Ministers meet in Cambodia. Commerce and industry minister Anand Sharma pledged his commitment to clarify all issues, the commerce and industry ministry said in a release.

The Japanese government, which is expected to invest $4.5 billion in this project, had sought dilution in the end use rules external commercial borrowings (ECBs) for the repayment of rupee loans and for working capital, which is currently barred by the RBI.