ECB Policy: MRO Now Part of Airport Infrastructure
Current · Source: Reserve Bank of India · RBI/2013-2014/429 · issued 06 Jan 2014 · ~1 min read
Quick answerRBI has expanded the infrastructure sector definition for ECB to include Maintenance, Repairs and Overhaul (MRO) as part of airport infrastructure. This means MRO activities now qualify for easier external borrowing under the infrastructure sub-sector.
The rule, in the simplest words
RBI now says 'Maintenance, Repairs and Overhaul' (MRO, which means fixing and keeping up airplanes) counts as part of airport infrastructure for getting foreign loans (ECB, or borrowing money from outside India).
Before this rule, MRO was not listed under airport infrastructure for ECB; now it is, so companies doing MRO can borrow foreign money more easily.
All other rules about ECB (like how much you can borrow or for how long) stay the same.
Banks must update their internal papers to treat MRO as airport infrastructure when processing ECB requests.
How it plays out — a real example
A forex & trade-finance officer in Indore reviews a loan application from an airport MRO company. Thanks to the new rule, she now classifies the MRO project under 'airport infrastructure' for ECB, making it eligible for easier foreign borrowing terms, and she updates her bank's internal guidelines to reflect this change.
What changed
Previously, MRO was not explicitly part of the airport infrastructure sub-sector for ECB purposes. Now, MRO is treated as part of airport infrastructure, distinct from related non-infrastructure services. All other ECB policy aspects remain unchanged.
What it means for you
Banks can now process ECB applications for MRO projects under the infrastructure sector, potentially with more favorable terms. This could boost lending to airport maintenance and repair firms, aligning with the government's Harmonised Master List. Lenders should update their internal ECB classification guidelines accordingly.
What you must do
Update internal ECB policy documents to include MRO under airport infrastructure sub-sector.
Inform customers and constituents about this change for new ECB applications.
Ensure MRO-related ECB requests are processed under the infrastructure sector framework.
Review existing ECB applications to see if any pending MRO cases can benefit from this clarification.
Who it affects
AD Category-I banks, Airport operators and MRO service providers, Borrowers seeking ECB for airport maintenance projects
❓ Common questions
Does this circular change any other ECB policy aspects?
No, all other aspects of ECB policy remain unchanged as per the circular.
What is the effective date of this change?
The circular was issued on January 6, 2014, and is effective from that date.
Does MRO include related services like catering or ground handling?
No, the circular specifies that MRO is distinct from related services which are other than infrastructure. Only MRO activities are included.
📜 Read the original circular — full text as issued by RBI
RBI/2013-2014/429
A.P. (DIR Series) Circular No. 85
January 6, 2014
To
All Category - I Authorised Dealer banks
Madam/Sir,
External Commercial Borrowings (ECB) Policy – Liberalisation of definition of Infrastructure Sector
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the Notification No. FEMA.281/2013-RB dated July 19, 2013 published in the Gazette of India vide G.S.R. No. 627 (E) dated September 12, 2013 and to the A.P. (DIR Series) Circular No. 48 dated September 18, 2013 in terms of which definition of infrastructure sector for the purpose of raising ECB was expanded taking into account the Harmonised Master List of Infrastructure sub-sectors and Institutional Mechanism for its updation approved by Government of India vide Notification F.No.13/06/2009-INF dated March 27, 2012.
2. On a review, it has been decided that, for the purpose of ECB, ‘Maintenance, Repairs and Overhaul’ (MRO) will also be treated as a part of airport infrastructure. Accordingly, MRO, as distinct from the related services which are other than infrastructure, will be considered as part of the sub-sector of Airport in the Transport Sector of Infrastructure.
3. All other aspects of ECB policy shall remain unchanged.
4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully
Rudra Narayan Kar
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-2014/429 · issued 06 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.
Inform customers and constituents about this change for new ECB applications.
Review existing ECB applications to see if any pending MRO cases can benefit from this clarification.
📜 Compliance
Update internal ECB policy documents to include MRO under airport infrastructure sub-sector.
Ensure MRO-related ECB requests are processed under the infrastructure sector framework.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Airport operators and MRO service providers, Borrowers seeking ECB for airport maintenance projects), your first concrete step on “ECB Policy: MRO Now Part of Airport Infrastructure” is: “Update internal ECB policy documents to include MRO under airport infrastructure sub-sector.” (RBI issued this 06 Jan 2014).
Circular: RBI/2013-2014/429 -- ECB Policy: MRO Now Part of Airport Infrastructure
Issued: 06 Jan 2014
Action required: Update internal ECB policy documents to include MRO under airport infrastructure sub-sector.
Action required: Inform customers and constituents about this change for new ECB applications.
Action required: Ensure MRO-related ECB requests are processed under the infrastructure sector framework.
Action required: Review existing ECB applications to see if any pending MRO cases can benefit from this clarification.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8668&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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