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
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.