(a) whether the Government allows Indian Industries/ companies to invest abroad;
(b) if so, the details thereof alongwith the names of companies where substantial investment has been made during the last year and management control has been taken over;
(c) whether the Government is providing any incentives including logistic support to such Indian companies; and
(d) if so, the details thereof;
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a) & (b):As per Notification No. 120/RB-2004 dated 7th July, 2004, under the Foreign
Management Exchange Act, 1999, an eligible “Indian partyâ€, (i.e. an Indian company incorporated
in India or a body created under an Act of Parliament or a partnership firm registered under
the Indian Partnership Act, 1932), is eligible to make overseas direct investment upto 400% of
the net worth of the company under Automatic Route if the company complies with the conditions
of Regulation 6&7 of the said Notification. No specific permission from Government is required
in such cases. If more than one such company, body or entity make an investment in the foreign
entity, all such companies or bodies or entities shall together constitute the “Indian partyâ€.
As informed by the Reserve Bank of India (RBI), investment made abroad by 10 top companies
(actual outflows) during April 01, 2008 to March 31, 2009 are as given in the Table below:
(USD Mn.) Name of the Company Total Outflow @
1. ONGC Videsh Ltd 2910.30 2. Hindalco Industries Ltd 2153.96 3. Tata Motors Ltd 1502.57 4. Tata Steel Ltd 992.61 5. Suzlon Energy Ltd 543.39 6. United Phosphorous Ltd 361.00 7 Reliance Natural Resource Ltd 275.00 8. ABAN Offshore Ltd 268.29 9. Videocon Industries Ltd 261.04 10. Reliance Industries Ltd 219.19