Question : SECOND PHASE OF LIBERALISATION



(a) whether under the second phase of liberalisation, some Indian firms have acquired major share in foreign firms;

(b) if so, the details thereof and the sectors in which investments made;

(c) whether the procedure and rules regulating repatriation of profits and dividends has been reviewed and fine tuned under the new law (FEMA); and

(d) if so, the decisions taken in the light thereof ?

Answer given by the minister

MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)

(a) & (b) Yes, Sir. According to the information furnished by Reserve Bank of India, during the period from 1st January 2000 till 31st July, 2000, 26 approvals have been issued to Indian companies for overseas acquisitions where the Indian stake in the foreign firm is 50% or more, as per details furnished in the Annexure.

(c) & (d) Yes, Sir. The condition of foreign exchange neutrality of the overseas investment within 5 years was dispensed with in May, 1999. Further, under the FEMA regulations, Indian promoter companies have been required to repatriate to India all dues receivable from the foreign entity like dividend, royalty, technical fees, etc. within 60 days of their falling due, or such further period as RBI may permit.

ANNEXURE

List of approvals for overseas acquisition where Indian stake In the foreign firm is 50% or more (from 01/01/2000 to 31/07/2000)

							(Amount in US$ million)

S.No. Indian Promoter Date of Country Equity Loan Guarantee % Activity approval
1 Wockhardt Ltd. 8.5/2000 USA 50 20 0 100 Drugs & Pharmaceuticals 2 Strides Acrolab Ltd. 5/1/2000 USA 8.01 0 4.02 100 Drugs & Pharmaceuticals 3 Jenson & Nicholson (I) Ltd. 2/5/2000 Nepal 0.3973 0 0 95 Paints, Varnishes, polishes 4 Berger Paints India Ltd. 2/5/2000 Nepal 0.6879 0.290 0 100 Paints, varnishes, polishes 5 Teamasia Semicondoctors Ltd. 8/5/2000 Mauritius 6.4800 0 0 100 Electronic Equipments 6 Real Time Holdings Ltd. 20.5.2000 USA 0.4950 0 0 51.95 Telecomm. equipments 7 Goa Carbons Ltd. 31/1/2000 Mauritius 0.0300 0 0 100 Petroleum products 8 System America (I) Pvt. Ltd. 4/5/2000 Canada 0.1833 0 0 100 Software dev. services 9 Arasan International Pvt. Ltd 6/5/2000 USA 0.2735 0 0 100 Software dev. services 10 BFL Software Ltd. 8/6/2000 USA 168.028 0 0 100 Software dev. services 11 Synergy Log-in Systems Ltd. 20/5/2000 Singapore 0.4370 0 0 100 Software dev. services 12 Ind-Telesoft Pvt.Ltd. 18/1/2000 USA 4.01 0 0 100 Software dev. servives 13 Subex Systems Ltd. 6/1/2000 USA 6.713 0 0 100 Software dev. services 14 Ind-Telesoft Pvt. Ltd. 18/1/2000 USA 0.074 0 0 100 Software dev. services 15 GE Indian Services Holding 22/3/2000 Mauritius 0.0001 0 0 100 Software dev. services Pvt. Ltd. 16 Shriram Global Technologies 6/7/2000 BV Island 0.500 0 0 100 Software dev.services Ltd. 17 Boston Management 26/7/2000 USA 0.300 0 0 100 Software dev. services Consultants Pvt. Ltd. 18 Leading Edge Systems Ltd. 31/3/2000 Bermuda 139.397 0 0 100 Software dev. services 19 Genesys Technology Ltd. 4/1/2000 USA 0.100 0 0 100 Software dev. services 20 Rave Technologies (P) Ltd 14/6/2000 U.K 1.5897 0 0 100 Software dev.services 21 KLG Systels Ltd. 13/5/2000 USA 10.515 0 0 100 Software dev.services 22 Zee Telefilms Ltd. 24/2/2000 BV Island 212.180 0 0 50 Broadcasting & telecasting 23 Modi Entertainment Network Ltd 10/4/2000 Mauritius 0.102 0 0 100 Broadcasting & relecasting 24 Maersk India Ltd. 10/4/2000 Nepal 0.0103 0 0 95 Shipping Agents 25 Dataline Transcription Pvt. Ltd. 26/7/2000 USA 0.105 0 0 100 Medical Transcription Services 26 Tata Tea Ltd. 6/3/2000 UK 101.6924 0 0 86.11 Tea