New Delhi: The Reserve Bank today relaxed norms for infrastructure companies with direct foreign equity up to 25 percent to raise fund overseas without government permission. On a review, it has been decided, to further liberalize the External Commercial Borrowings (ECBs) policy in respect of the infrastructure sector, RBI said in a statement. Direct foreign equity holder (holding minimum 25 percent of the paid-up capital) and indirect foreign equity holder holding at least 51 percent of the paid-up capital, will be permitted to provide credit enhancement for the domestic debt raised by Indian companies engaged exclusively in the development of infrastructure through issue of capital market instruments, it said. It includes Infrastructure Finance Companies (IFCs) and no prior approval will be required from the Reserve Bank for providing such credit enhancements, it said. The company fulfilling foreign equity criteria does not require permission for raising ECB up to $5 million. Now onwards the term debt in the debt-equity ratio will be replaced with ECB liability and the ratio will be known as ECB liability-equity ratio to make the term signify true position as other borrowings or debt are not considered in working out this ratio, it said. Service sector units, in addition to those in hotels, hospitals and software, could also be considered as eligible borrowers if the loan is obtained from foreign equity holders, it said. This would facilitate borrowing by training institutions, R&D, miscellaneous service companies, etc, it said. ECB from a group company may also be permitted provided both the borrower and the foreign lender are subsidiaries of the same parent, it added.