The government has no plans to change the overseas borrowing norms for firms at present, but may consider the demand of the industry to revise rules for interest spread for such borrowings, a senior finance ministry official said on Monday.

"The government thinks there is no need to change it (external commercial borrowing rules)," he said, adding that the Reserve Bank of India [Get Quote] and the finance ministry have received various representations to widen the spread of interest rates vis-a-vis LIBOR ( London Interbank Bid Rate).

In May, the government revised ECB (external commercial borrowing) norms, raising interest rate ceilings from 150 bps to 200 basis points annually over Libor having average maturity of three years and up to five years and 250 bps to 350 bps annually over Libor in respect of ECBs having average maturity of more than five years, respectively.

The government raised the limit of the amount that could sent to the country in case of infrastructure and other sectors to $100 million and $50 million, respectively.

"We have received several representations to revisit the spreads. We are looking into it," he said. The interest rate at which Indian firms can borrow funds abroad is linked to the Libor rate.

To arrest sharp appreciation of the rupee that was hitting profit margins on export, the finance ministry had imposed curbs on ECBs last year. Only $20 million of the money raised abroad was allowed to be remitted in India.

The industrial chambers, including the Federation of Indian Chambers of Commerce and Industry, have demanded that the government should further relax ECB norms to help companies raise money abroad at cheaper rates and to combat high double digit inflation through increase in capital inflow.