| Welcome
to SIPCOT It's new and improved website We
have revamped and provided more information for investor.
If you feel we need to add some additional information please
let us know. State Industries Promotion Corporation of Tamil
Nadu (SIPCOT) Limited, a fully government owned premier
institution, established in the year 1972, has been a catalyst
in development of small, medium and large scale industries
in Tamil Nadu. |
| Indian Policies |
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Policy
on Indian investments overseas liberalised: A
press note |
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With
a view to encouraging Indian Corporates to globalize,
and in line with Government policy to move towards
capital acccount convertablity, the Government
has decided to further liberalise the existing
policy on Indian investments overseas. The following
modifications have been decided upon in the
existing policy, and will take immediate effect. |
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1. Fast Track
Windows |
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In addition to the existing
Fast Track under which RBI issues approvals,
within 21 days, for proposals of overseas investments
upto US $ 4 M on the basis of export track record
(upto 25% of average annual export earnings
over the past 3 years are eligible for Fast
Track treatment under this window), the following
2 new Fast Track windows would be available
for overseas investments:
 Investments
from Balances in Exchange Earners Foreign Currency
(EEFC) Accounts -As per Finance Minister's announcement
in the Budget Speech 1997-98, investments in
overseas Joint Ventures and Wholly owned Subsidiaries,
upto a maximum of US $ 15 M, to be funded out
of EEFC balances, would be permitted by Authorized
Dealers (ADS) without references to the Reserve
Bank of India. Such investments would be permitted
without reference to the norms and guidelines
in the existing policy on investments overseas.
The ceiling of US $ 15 M would be inclusive
of the ceiling of US $ 4 M under the existing
Fast Track and would be applied in respect of
overseas investments by a corporate over a block
of 3 financial years.
Investment
out of Global Depository Receipts (GDRs)Indian
corporates raising GDRs would be permitted to
invest, in ventures overseas, a maximum of 50%
of GDRs to be raised, under the normal GDR approval
process of Ministry of Finance with overseas
investment as a permitted end-use. Separate
clearance from the overseas investment angle
would not be necessary in such cases nor would
such investments be subject to the obligation
of neutralizing the investment amount through
inward remittances over five years. |
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2. Special Committee
Route |
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All
cases not covered under the Fast Track windows
would be considered by the special inter-Ministerial
Committee, located in RBI, under the Chairmanship
of Commerce Secretary. The norms and parameters
already notified by the Government would continue
to be applicable for such cases, with the following
modifications.
investment
proposals with a sizeable GDR and or EEFC component
would have priority.
in
respect of investment proposals in excess of
US $ 15 M, the additional amount can be funded
through
EEFC balances, in addition to GDR funds. Exemption
from the requirement of GDR/EEFC funding
for such investments would be considered in
cases where the companies have a strong track
record in
exports, or where there are other compelling
benefits in the investment proposal. |
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3.Delegation
to Special Committee |
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Under
present procedures, the inter-Ministerial Special
Committee in RBI is authorized to give final
approval for investment proposals upto US $
10 M, beyond which proposals require Finance
Minister's approval. It has now been decided
to enhance the empowered mandate of the Special
Committee to cover investment proposal upto
US $ 15 M. |
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4.Clearance
under Companies Act |
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Under
present procedures, all proposals of Indian
investment overseas require a separete clearance
of the Central Government under Sections 370
and 372 of the Companies Act, 1956. It has not
been decided that such clearance would be considered
during the Special Committee's consideration
of the investment proposal, and the approval
granted by the Special Committee would include
the approval under Section 370 and 372 of the
Companies Act as well.
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| Industrial Complexes
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| To ensure a good
impact with the available limited resources, SIPCOT
has created Industrial Complexes and Parks, strategically
located in seventeen places, which occupy a place
of pride in the State's industrial map. |
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