05 October 2011
one partner ship firm planning to borrow dollar loan of USD1.2mn for 8yr repayment period to carry on cultivation of cash crops-fruits-vegetables etc
is there any RBI restriction?
does this amount-USD1.2mn come under ECB ?
we will have the company converted as pvt ltd and then seek the loan fund..under such case automatic route is allowed?
i understand horticulture-cultivation of fruits and vegetables are permitted ..is it true?
when we are targeting exports is agri-crops still not eligible?
06 October 2011
1. For firm you need to have specific rbi approval as same is not allowed in automatic sector. 2. Purpose for which you intend to have ecb is ineligible sector hence you will not get approval for same. 3. Amount is not an issue.
06 October 2011
1) On conversion to Pvt Co, it can fall under automatic. 2) I reserve my doubt for that. As guidelines are specific for industrial sector including SME & real sector i.e infrastructure. If you can prove it can be categorized as industrial sector, you may proceed. Advice to have opinion from counsel, before proceeding as banker may allow but if RBI subsequently points this then compounding is bitter play.
CAclubindia
