NOTIFICATION NO. S.O. 719(E), DATED 29-9-1994
The Central Government hereby notifies the following scheme for facilitating investments by the European Economic Community for the belief it of establishment of joint ventures in India.
1. (i) This Scheme may be called the European Economic Community International Institutional Partners (ECIIP) Scheme, 1993.
(if) It shall be deemed to have come into force with effect from 1st April, 1993.
In this Scheme, unless the context otherwise requires:--
(a) "European Economic Community" means the European Economic Community (EEC) established by the Treaty of Rome of 25th March, 1957.
(b) "Institutional partner" means a financial institution approved in this behalf by the Central Government.
(c) "Facility" means any of the four facilities offered by the European Economic Community under its International Institutional Partners Scheme, as given in the annexure to this Scheme.
3. Structure of the Scheme.--
(1) The European Economic Community has developed a financial instrument called the European Community International Investment Partners (ECIIP) Scheme to promote joint ventures in Asia, Latin America and the Mediterranean countries. EEC signs framework agreements with financial institutions in the target country, and makes available its financial assistance through these partner financial institutions. ECIIP specifically aims its assistance at small and medium sized companies, but larger companies can also benefit, if their projects are particularly interesting for the development of the country.
(2) EEC has so far entered into Memoranda of Understandings (MOUs) with three financial institutions in India, viz., ICICI, IDBI and the Exim Bank of India. EEC may in future decide to have similar MOUs with other financial institutions and/ or banks in India.
(3) The European Economic Community has expressed and intention that the community does not intend to repatriate interest, dividends, or capital gains arising out of the investments under the ECIIP Scheme. Noting the expressed intention of the community that the community does not intend to repatriate proceeds of sale of shares or dividends arising out of the investments made under ECIIP Scheme, and intends to reinvest such proceeds in India, which, is also the preferred arrangement in so far as the Government of India is concerned, the Government of India has inserted a new clause (23BBB) in section 10 of the Income-tax Act to...