The Gazette of India
EXTRAORDINARY
PART I— Section I
PUBLISHED BY AUTHORITY
No. 4] NEW DELHI, TUESDAY, JANUARY 2, 2001/PAUSA 12,1922
2 _ Tjffi_GAZETTE_OF INDIA EXTRAORDINARY |PARJ i—SKI- 11 MINISTRY OF FINANCE(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 1st January, 2001
Guidelines for Indian Direct Investment in Joint Ventures and wholly owned subsidiaries abroad
F. No. l/2/94-LC.(Vol. IV).—The guidelines for Indian direct investment in joint ventures and subsidiaries abroad issued by the Ministry of Finance has been liberalised from time to time. In pursuance of the announcement made by the Finance Minister in his Budget Speech 200Q-01, the policy on overseas direct investment was further liberalised and the ceiling under the automatic route for overseas investments was raised from US$ 15 mn to US$ 50 mn for Indian companies. A special dispensation was provided in the Guidelines for neighbouring countries where higher ceilings were applicable for overseas investments. In order to continue the special dispensation for Indian direct investments in neighbouring countries the Guidelines for Indian direct investments in joint ventures and subsidiaries abroad shall be amended as under wilh effect from 31st July, 2000, in supersession of this department's notification of even number dated 31st July, 2000:—
1. Paragraphs 5 1 and 5.9 shall be substituted as under :
"5 1 A private/public limited company will be cligilble for direct investment in a joint venture/wholly owned subsidiary abroad on an automatic basis, without prior reference to RBI up to a total value of investment not exceeding US$ 50 (fifty) million (not applicable to Indian investments in neighbouring countries, namely, Bangladesh, Maldives, Myanmar, Sri Lanka, Pakistan, Nepal and Bhutan), in respect of Indian investment in neighbouring countries, namely, Bangladesh, Maldives, Myanmar and Sri Lanka total value of investment not exceeding US$ 75 (seventy five) million and in respect of rupee investment in Nepal and Bhutan, the total value of investment not exceeding Rs. 350 (three hundred and fifty) crores, provided."
tL5 9 This facility of automatic route will be available to the Indian party only once in a block of three calendar years including the calendar yearln which the investment is made. However, within the overall limit of USS 50 (fifty) million and its entitlement of 25% of the net worth, US$ 75 (seventy five) million in case of investment in neighbouring countries, namely, Bangladesh, Maldives, Myanmar and Sri Lanka, Rs. 350 (three hundred and fifty) crores in case of investment in Nepal and Bhutan, the Indian party may be permitted to invest in equity/provide guarantee etc. on the automatic route on more than one occasion and in more than one J V/WOS abroad."
G.S. DUTT,Jt Secy.