Liberalising the external commercial borrowing -ECB norms for powersector, the Centre today said that power companies can now use up to40 per cent of loans to refinance their rupee debt but the rest 60 percent must be utilised for investments in new projects. According tothe Finance Ministry, earlier, power companies were allowed to useonly 25 per cent of the ECB to refinance their domestic rupee-debtloan.The policy decision will increase access to cheaper funds forcompanies in the power sector. In another decision, the government hasalso opened the ECB route for capital expenditure on the maintenanceand operations of toll systems in the roadways and highways sectorprovided these are part of the original project.The policy decisionwill provide an additional source of low-cost capital and encouragegreater investment in road construction projects.RBI is expected toissue relevant notifications within seven days giving effect to thesedecisions.