Govt allows Rs 5,000 cr overseas borrowing for airlines
Finance Minister Pranab Mukherjee had proposed the move in his budget
The government has allowed aviation companies to borrow up to Rs 5,000 crore from overseas to meet their working capital requirement for one year, the finance ministry said in a statement on Thursday.
Finance Minister Pranab Mukherjee had proposed the move in his budget for 2012/13 that was announced in March.
The statement also said the Reserve Bank of India would consider relaxation in average maturity of overseas borrowing above $20 million from 5 to 3 years for the aviation sector.