Financial Daily from THE HINDU group of publications
Friday, Apr 29, 2005

News
Features
Stocks
Port Info
Archives
Google

Group Sites

Money & Banking - Credit Policy
Corporate - Overseas Investments


`More room for overseas buys'

Our Bureau

Mumbai , April 28

INDIAN companies increasing their global presence through overseas investments received a fillip from the Credit Policy with the RBI hiking the limit for such investment under the automatic route from the earlier level of 100 per cent of a company's net worth, to 200 per cent.

"We have been encouraging corporates to acquire companies outside. This move is a signal to support overseas investment," Dr Y.V Reddy, Governor, RBI, said at a press briefing. On their part, companies have lauded the move.

Essel Propack, which has a large overseas presence, hopes to get more room for acquisitions. "We were very close to the 100 per cent ceiling of our net worth. This will be a big boon for the company," Mr R. Chandrasekhar, Chief Operating Officer, Essel Propack, said. The company had made a representation to RBI to lift the ceiling a couple of months ago. "For companies like Essel Propack, whose net worth is small, 100 per cent was too little," he said.

Any liberalisation in overseas investment policy is welcome news for India Inc, now seriously looking at international acquisitions. Of late, old economy players have also vaulted into the international arena along with their new economy counterparts, picking up companies or setting up joint ventures.

Companies such as Tata Steel, Tata Motors, Bharat Forge, Essel Propack, VSNL, Infosys and Raymond have made investments overseas in the recent past.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Banks asked to refocus on deposit mobilisation


Right emphasis on growth and liquidity
More inward-looking than warranted
A slick balancing act
Reflects buoyancy in economy
Priority for priority sector
Govt borrowing may cost more
The RBI's shifting focus
Rupee in range; bond prices fall
RBI hikes reverse repo rate to absorb excess liquidity — Alert sounded on rate front
Closer SIDBI, banks linkage for SSI credit flow
Non-bank players, except PDs, to be off money market from Aug 6
`More room for overseas buys'
Post-harvest loan limit doubled to Rs 10 lakh
Reverse repo rate hike — PDs nervous, seek safety net
RBI takes note of small depositors!
India Inc says policy is `pro-growth'
`A pointer to turn in interest rate cycle'
Esanda picks Finacle
BHEL gesture
Bond prices decline
Reverse repo hike not to impact lending rates, says Chidambaram
'No velvet glove to big defaulters'
Interest of depositors is key for banks: Reddy
`Vaidyanathan panel report not acceptable in present form'


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line