Government Clears 20 FDI Proposals Worth Rs. 988 Crore

[IndoCarib]

He is talking about the wrap up. Do the GoI control if they wrap up they can convert the money back to dollar or not?

FDI in India is generally allowed to be repatriated along with capital appreciation, After payment of taxes due on them, provided the investment was made on a repatriable basis. If the company goes bust and wants to wrap up its operations, it is not binding on GoI to refund their investments.

 

[The Huskar]

FDI in India is generally allowed to be repatriated along with capital appreciation, After payment of taxes due on them, provided the investment was made on a repatriable basis. If the company goes bust and wants to wrap up its operations, it is not binding on GoI to refund their investments.

So you're saying that it is a win win situation for India.

 

[trollhunter]

FDI in India is generally allowed to be repatriated along with capital appreciation, After payment of taxes due on them, provided the investment was made on a repatriable basis. If the company goes bust and wants to wrap up its operations, it is not binding on GoI to refund their investments.

Thanx for clearing it up

 

[narcon]

FDI in India is generally allowed to be repatriated along with capital appreciation, After payment of taxes due on them, provided the investment was made on a repatriable basis. If the company goes bust and wants to wrap up its operations, it is not binding on GoI to refund their investments.

FDI is managing ownership in a business enterprise in one country by an entity based in other (country)

Why use such useless statements (underlined above)?

Why would GOI refund their private investment if their venture went bust, did they give it directly to GOI? They just brought their funds into India for their own goals - Good or bad (for them)

 

[IndoCarib]

The multinational company who brings fdi can ask for immediate payment in dollars of his all capital plus profits back in dollars. It is fdi condition that foreign company can repatriate the invested funds and profit, so we will have to pay them dollars when they want their money back. so if fdi bringers synchronize a massive pullout, then within few days they can create extreme shortage of dollars which can break nation in pieces..That is why in my idea to trust regional hubs MR.

FDI is managing ownership in a business enterprise in one country by an entity based in other (country)

Why use such useless statements (underlined above)?

Why would GOI refund their private investment if their venture went bust, did they give it directly to GOI? They just brought their funds into India for their own goals - Good or bad (for them)

 

[narcon]

The multinational company who brings fdi can ask for immediate payment in dollars of his all capital plus profits back in dollars

Source: Government Clears 20 FDI Proposals Worth Rs. 988 Crore | Page 2

This is purely a Hard Currency versus Rupee issue when the repatriation would be applicable and not otherwise...

GOI is not bound for any refund for any company (FDI brought in), which may have involved bankruptcy therein in India under any such granted operation commercial/business rights during an agreement...

 

[IndoCarib]

So you're saying that it is a win win situation for India.

Yes it is. Countries are vying for FDI

 

[Kloitra]

Guys, you are making it more complicated. What my question was, if a company for whatever reason decides to pack up, is govt compelled to change all its rupee to dollars?

 

[IndoCarib]

Guys, you are making it more complicated. What my question was, if a company for whatever reason decides to pack up, is govt compelled to change all its rupee to dollars?

I think not.

@narcon . any info on this ?

 

[narcon]

I think not.

@narcon . any info on this ?

As per the RBI regulations the currency CAN be converted into USD and be repatriated as per the original clause of the agreement between the 2 parties as regulated by RBI..

Even an NRI can have his money (invested in Indian Banks in Rupees) have it back in USD or Euros that he deposited....That is guaranteed /

Other than that, who will bring his/her/their hard currency in India and get stuck with Indian Rupee which is depreciation prone?

 

[IndoCarib]

As per the RBI regulations the currency CAN be converted into USD and be repatriated as per the original clause of the agreement between the 2 parties as regulated by RBI..

Even an NRI can have his money (invested in Indian Banks in Rupees) have it back in USD or Euros that he deposited....That is guaranteed /

Other than that, who will bring his/her/their hard currency in India and get stuck with Indian Rupee which is depreciation prone?

in the case of repatration of profits yes. Kloitra's question is what if the company decides to pack up ?

 

[narcon]

in the case of repatration of profits yes. Kloitra's question is what if the company decides to pack up ?

That will depend upon how the wordings of the contract is written!
Each International company with a clout that of IBM and Intel would have more leverage than a little known companies of Bangladesh/Tanzania origin...Its all about mutual interest!

The common sense/conventional wisdom dictates that they be allowed to repatriate their funds in their original currency if they leave Indian shores..