Telecom operators offering 3G services have approached the Reserve Bank of India to make the norms pertaining to external commercial borrowings (ECBs) less stringent, say news reports. This is to help these companies raise funds to pay off their debts.
Prior to this, the Ministry of Finance had amended the guidelines to help operators pay the amount required to bag 3G spectrum and subsequently raise funding from overseas over 12 months.
Now, these operators have requested the Ministry of Finance to extend the amendment for six months more. In fact, several industry bodies, such as the Association of Telecom Services Providers of India (AUSPI) has already sent a proposal to the RBI stating that since operators were facing difficulties in raising the required funds in a single tranche, more time ought to be given to raise funds in the second tranche.
