(i) Investments up to U.S.$ 15 million including the amount of investments approved by Reserve Bank under its Fast Track Route, in a block of three years, would be allowed by authorised dealers from out of the balances held in the Exchange Earners Foreign Currency (EEFC) Account of the Indian promoter company without reference to Reserve Bank. The ceiling of U.S.$ 15 million will cover equity, loan and 50% of the contingent liabilities like guarantee. This limit of U.S.$ 15 million will be applicable for a block of three years commencing from the first month of relative calendar half-year in which the first approval is accorded either by Reserve Bank or the authorised dealer, as the case may be. For example, if an approval by Reserve Bank or the authorised dealer was issued in the month of September 1997, the block of three years will be from 1st July 1997 to 30th June 2000 and if it was issued in the month of April 1997, the block of three years will be from 1st January 1997 to 31st December 1999.

(ii) Proposals of overseas investment which involve cash remittance of equity and loan or guarantee should only be permitted by authorised dealers under this Window. Authorised dealers should not approve cases where the overseas investment proposals involve capitalisation of export proceeds of plant and machinery/goods, utilisation of Euro-issue proceeds, etc. for which the Indian promoter companies have to make an application to Reserve Bank or the Ministry of Finance as the case may be.

(iii) Proposals of Indian companies involving contingent liabilities, such as, extension of corporate/bank guarantee to/on behalf of their JV/WOS abroad may be approved by the authorised dealer maintaining the EEFC account subject to a margin amount equivalent to 50% of the guarantee being earmarked separately in the EEFC account of the applicant company for the entire tenure of the guarantee and within the overall ceiling of U.S.$ 15 million. If and when the relative guarantee is invoked, such earmarked funds have to be utilised towards satisfaction of the guarantee claim and for the shortfall amount, the balances available in the EEFC account should be used. In case, funds in the EEFC account are not adequate, the Indian promoter company may acquire foreign exchange from the market. Credit risk involved in allowing such facility of guarantee has to be assessed by the concerned authorised dealer keeping in view the usual norms and commercial judgement.

(iv) An Indian promoter company proposing to make overseas investment in JV/WOS under the EEFC Fast Track Window should submit an application to the concerned authorised dealer with whom the EEFC account is maintained in form ODA, in triplicate, alongwith the documents indicated therein. In case the Indian promoter company holds more than one EEFC account with authorised dealers, the overseas investment under this scheme should be routed through a specific EEFC account maintained with a particular branch of an authorised dealer. For proposals for additional equity, loan and guarantee, in respect of JV/WOS already approved by Reserve Bank or the authorised dealer, application should also be made in form ODA, in triplicate, to the concerned authorised dealer citing Reserve Bank Identification Number. For such supplementary proposals, particulars furnished earlier to the authorised dealer, when the first application (in form ODA) was submitted, need not be repeated and revised particulars may only be indicated. The amount of Indian promoters contribution under the supplementary proposals alongwith earlier approvals granted by Reserve Bank/authorised dealer should not exceed U.S.$ 15 million in a block of three years. Where the amount of investment exceeds U.S.$ 15 million in a block of three years, such proposals should not be considered by authorised dealers and the applicant should be advised to approach Reserve Bank.

(v) Guidelines to be followed by authorised dealers for processing applications under EEFC Fast Track window and the procedure and the terms and conditions to be complied with by the applicants are given in Annexures II and III respectively.