VVR. Murthy, an Industrialist, wishes to take External Commercial Borrowings from Norway for the purpose of Repayment of Rupee Loan in India. Can he do so ? Give the end-uses (Negative List) under the External Commercial

The negative list, for which the External Commercial Borrowings (ECB) proceeds cannot be utilised, would include the following: Real estate activities Investment in capital market Equity investment Working capital purposes, except ECB raised from foreign equity holder for working capital purposes, general corporate purposes or for repayment of Rupee loans and except ECB raised for (i) working capital purposes or general corporate purposes (i) on-lending by Non-Banking Financial Companies (NBFCs) for working capital purposes or general corporate purposes. General corporate purposes, except in case of ECB raised from foreign equity holder for working capital purposes, general corporate purposes or for repayment of Rupee loans and except ECB raised for (i) working capital purposes or general corporate purposes (i) on-lending by NBFCs for working capital purposes or general corporate purposes. Repayment of Rupee loans, except in case of ECB raised for (i) repayment of Rupee loans availed domestically for capital expenditure (i) on-lending by NBFCs for the same purpose and except ECB raised for (i) repayment of Rupee loans availed domestically for purposes other than capital expenditure (ii) on-lending by NBFCs for the same purpose. On-lending to entities for the above activities, except in case of ECB raised by NBFCs for (i) working capital purposes or general corporate purposes (ii) onlending by NBFCs for working capital purposes or general corporate purposes (iii) repayment of Rupee loans availed domestically for capital expenditure (iv) on- lending by NBFCs for purpose stated in (iii) (v) repayment of Rupee loans availed domestically for purposes other than capital expenditure (vi) on-lending by NBFCs for the purpose stated in (v) above. In view of the above, subject to VVR Murthy complying with Para 6 of the end use list for ECB he may avail ECB Loan for repayment of Rupee Loan in India. He cannot raise ECB from foreign branches / subsidiaries of Indian banks.