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Business Environment and Law-Foreign Capital And Collaboration

Financial And Technical Collaborations-Foreign Capital And Collaboration

   Posted On :  06.05.2018 10:22 pm

Upto Rs.600 crores the Industry Ministry accords approval on the advice of Foreign Investment Promotion Board (FIPB), but larger projects over these limits are approved by Cabinet Committee on Foreign Investment (CCFI).

Financial And Technical Collaborations


Foreign collaborations are of two types:


  • Technical approvals involving payments for technology
  • Financial approvals involving equity capital of an existing or new undertaking.

Upto Rs.600 crores the Industry Ministry accords approval on the advice of Foreign Investment Promotion Board (FIPB), but larger projects over these limits are approved by Cabinet Committee on Foreign Investment (CCFI).

Sources Reveal:


  • Financial collaborations were just 20.1% during 1981 – 1985, their share improved to 28.8 % during 1985 – 90 but rose sharply to 72 % during 1991- 1997.
  • The amount of approved investment also increased sharply from Rs.899 crores during 1985 – 90 to Rs.1, 73,510 crores in August 1998.

Obviously there is a shift from technical approvals to financial approvals during the post liberalization phase. However, Government has been successful in attracting more foreign investment in the post liberalization phase as compared to the earlier period.

 


Tags : Business Environment and Law-Foreign Capital And Collaboration
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