The government of India has expanded the definition of “infrastructure” under the external commercial borrowing (ECB) policy. Infrastructure would now include power, telecommunication, railways, roads including bridges, sea ports and airports, industrial parks, urban infrastructure (water supply, sanitation and sewage projects), mining, exploration and refining sectors.

The companies can now borrow up to $500 million a year from abroad for spending in India. The finance ministry has allowed the entities of infrastructure to raise funds through ECB on Thursday. The companies must get approval of Reserve bank of India before transaction through ECB. The move would benefit companies like ONGC, RIL, Coal India, Essar Steel, Cairn India and Sesa Goa.

The maturity period for ECB is fixed for seven years. Non-infrastructure companies can get up to $50 million in a year for rupee capital expenditure. The terms of higher all-in-cost ceilings would also benefit the companies due to extended maturity period.