"The successful bidders in the 2G auction would be eligible to refinance their Rupee loans availed of from the domestic lenders for making the upfront payment with a long term ECB under the automatic route," a Finance Ministry official told PTI.
The bidding for the airwaves is scheduled to start from November 12.
The telecom industry had been seeking further easing of the ECB norms as banks are reluctant to lend money to the sector.
In order to develop the telecom sector, the government in January 2010 had provided a window of 12 months to successful bidders of 2G auction for refinancing the rupee loan from domestic lenders to make payment for spectrum allocation with a long term ECB under the approval route.
"Keeping in view the large outlay of funds required to be paid directly to the government within a limited period of time, relaxation is provided for the upcoming 2G auction," the official added. MORE
