9A.7
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Release of Exchange for other purposes
(i) Authorised dealers have been permitted to release exchange up to U.S.$ 100,000 by Indian companies to overseas consultants for conducting feasibility studies for projects to be set up/acquired abroad, vide item XI(B) of Part B of Annexure I to Chapter 8. Applications involving remittances beyond U.S.$ 100,000 should be referred to the concerned Regional Office of Reserve Bank giving full details. Permission granted by authorised dealer/Reserve Bank for remittance for conducting such feasibility studies should not be construed as in principle approval for setting up/acquiring any overseas concern.
(ii) For release of exchange for meeting preliminary/pre-operative expenses in connection with JV/WOS abroad approved by Government of India/Reserve Bank, applications should be made to the concerned Regional Office of Reserve Bank. Such applications would be considered by Reserve Bank keeping in view, inter alia, the nature of the project, total project cost, need for meeting such expenses from India, etc. subject to such conditions as deemed necessary including repatriation of amounts so released. Remittances towards recurring expenses for the upkeep of the JV/WOS will, however, not be permitted.