The government has allowed aviation companies to borrow up to Rs 5,000 crore from overseas to meet their working capital requirement for one year, the finance ministry said in a statement on Thursday.
Finance Minister Pranab Mukherjee had proposed the move in his budget for 2012/13 that was announced in March.
The statement also said the Reserve Bank of India would consider relaxation in average maturity of overseas borrowing above $20 million from 5 to 3 years for the aviation sector.
