ECB For Low Cost Affordable Housing Scheme

The Finance Minister of India while presenting the Union Budget for the year 2012-13 had proposed to allow External Commercial Borrowings ("ECBs") for low cost affordable housing projects. In view of the announcement made in the Union Budget The Reserve Bank of India issued Circular on External Commercial Borrowings ECB for Low Cost Affordable Housing Scheme vide A.P. (DIR Series) Circular No.61 dated 17th December, 2012 which allowed ECB of USD 1 (One) billion for the Financial Year 2012-2013.

THE DETAILED GUIDELINES ON ECB SET OUT IN THE CIRCULAR FOR LOW COST AFFORDABLE HOUSING SCHEME WERE AS FOLLOWS

DEFINITION OF ELIGIBLE PROJECT

A low cost affordable housing project for the purpose of ECB would be a project in which at least 60 per cent of the permissible FSI would be for units having maximum carpet area up to 60 square meters.