(i) Proposals involving Indian direct investment not exceeding U.S. $ 15 million (U.S. $ 30 million in respect of investments in SAARC countries and Myanmar) in a block of three calendar years in JV/WOS abroad are considered by Reserve Bank under its Fast Track Route. The investment is permitted either in the form of cash remittance and/or capitalisation of exports, technical know-how fees, etc. or by way of grant of loans or issue of corporate guarantees by Indian companies to/on behalf of the JV/WOS within the overall limit of U.S.$ 15 million. Contingent liabilities like guarantees to be issued to/on behalf of the overseas JV/WOS by the Indian promoter company would be reckoned at 50% of their face value for determining the ceiling amount of investment. Such applications are processed and cleared by Central Office of Reserve Bank within a period of 21 days from the date of receipt of applications ,provided
(i) the amount of investment does not exceed 25% of the annual average export/foreign exchange earnings of the applicant Indian company (other than equity exports to their JV/WOS abroad) in the preceding three years,
(ii) other criteria laid down in the Guidelines (Annexure I)are fulfilled and
(iii) the application is complete in all respects. Proposals for rupee investment in Nepal and Bhutan not exceeding Indian Rs.120 crores are also considered by Reserve Bank under this Fast Track Route without any linkage to the past export/foreign exchange earnings of the Indian promoter company. In such cases the Indian promoter company can repatriate all its entitlements like dividend, royalty, technical know-how fees etc. in Indian rupees instead of in foreign exchange.

(ii) In addition to the Fast Track Route of Reserve Bank two more Fast Track Windows, viz. EEFC Fast Track Window and GDR Fast Track Window are available for overseas investments which are explained in paragraphs 9A.5 and 9A.6. Proposals which do not qualify for clearance under these Fast Track Windows will be processed by the Special Committee constituted for this purpose by the Reserve Bank. The Committee, while considering such proposals, will take into account the quantum of EEFC/GDR funds to be utilised by the Indian promoter companies for their overseas investment, their networth, scale of operations and other criteria laid down in the Guidelines. Large investment proposals involving amounts in excess of U.S.$ 15 million or its equivalent will be referred to the Ministry of Finance for clearance. After the proposals are cleared by the Committee/Ministry of Finance, the necessary approvals will be issued by the Reserve Bank. In all cases of overseas investments, the Indian promoter companies should repatriate to India, through normal banking channels, dividends and other entitlements due to them from their investments in JV/WOS abroad.

(iii) Applications in form ODI, together with documents indicated therein, should be submitted, in four sets in respect of proposals coming under the Fast Track Route (including rupee investment in Nepal) and in seven sets in respect of other proposals coming under the Normal Route and Large Investment Route with or without GDR/EEFC funds, to the Chief General Manager, Exchange Control Department, Overseas Investment Division (OID), Reserve Bank of India, Central Office, Amar Building, Fort, Mumbai 400 001. Besides, in respect of cases which do not qualify for clearance under the Fast Track Route of Reserve Bank, a copy of the proposal should be forwarded simultaneously by speed post/courier to the concerned Indian Mission in the host country, as indicated in form ODI.

(iv) Where the Indian companies require approval under the Companies Act, 1956 or any other law for the proposed overseas investment, it shall be their responsibility to obtain such approvals from the appropriate authority.

(v) Approval letter issued by Reserve Bank will contain the terms and conditions to be complied with as also the procedure to be followed for effecting actual investment in overseas concern. Reserve Bank will also allot a unique Identification Number for the JV/WOS. On receipt of necessary approval from Reserve Bank, Indian parties should approach the concerned Regional Office of the Exchange Control Department of Reserve Bank for making exports towards equity participation, effecting remittance towards equity/loan, etc.

(vi) Any proposal for addition/deletion of the terms and conditions of approval, change in size and pattern of investment, granting of loan and/or issue of guarantee from India beyond the limit approved, etc. should be submitted to Reserve Bank, Central Office, with a copy to the concerned Regional Office, justifying the need for the proposal along with the latest information on progress and achievements of the overseas concern and the revised projections relating to profitability and repatriable entitlements, wherever necessary. In respect of supplementary proposals envisaging enhancement of equity, loan/guarantee or involving major changes in the existing terms and conditions of approval resulting in revision in the projections of profitability of the overseas concern and the promoter companys entitlements therefrom, the required information should be furnished by way of application in form ODS for prior approval.