Day: February 4, 2013

Amit Guin
The Government has taken various steps to promote investments by Indians living abroad, in India. The Government plays a pivotal role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors including the Non-Resident Indians (NRIs) about the investment policies and procedures and opportunities.
For the purpose of investments in India, it should be known that a NRI is a person residing outside India, but who is a citizen of India or is a Person of Indian Origin. A Person of Indian Origin is one who or whose ancestors was an Indian national and who is presently holding any other country’s citizenship/nationality.
The Government has a liberal and transparent policy for Foreign Direct Investment, including investments from NRIs, wherein most of the sectors are open to FDI under the automatic route. NRIs can make investment in India under various schedules of Foreign Exchange Management (Issue or Transfer of Security by a Person Resident outside India) Regulations, 2000 as amended from time to time. Investment under FDI Scheme contained in Schedule 1 of these Regulations, permits 100 per cent NRI investments, under the automatic route, in the sector of townships, housing, built-up infrastructure and construction-development projects (which include, but are not restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure), without the conditionalities attached to FDI in such projects. It also grants a special dispensation for NRI investments in the sectors of Scheduled Air Transport Services/Domestic Scheduled Passenger Airlines, Non-Scheduled Air Transport Services, Ground Handling Services, wherein 100 per cent NRI investment is allowed under the automatic route.
Along with these, NRIs can also invest in share/convertible debentures of an Indian company under FDI scheme subject to terms and conditions specified in Schedule 1 to Notification No. FEMA 20. An NRI can purchase and sell shares/convertible debentures of an Indian company on both repatriation and non-repatriation basis under Portfolio Investment Scheme (PIS), through registered broker or recognised Stock Exchanges in India. The individual limit for NRI under PIS is five per cent of the paid up capital/paid up value of each series of convertible debentures of an Indian company and aggregate limit for all NRIs taken together is one per cent of the paid up capital/paid up value of the company. This limit can be increased by the Indian company to 24 per cent by passing a Board resolution and special Annual General Meeting resolution. Apart from this, an NRI, barring certain sectors, according to Schedule 4 to Notification No. FEMA 20, may without any limit purchase on non-repatriation basis shares/convertible debentures of an Indian company whether by public issue or private placement or right issue.
In terms of Schedule 5 to Notification No. FEMA 20, an NRI may, without limit, purchase on repatriation basis, Government dated securities (other than bearer securities) or treasury bills or units of domestic mutual funds; bonds issued by a PSU in India; non-convertible debentures of a company incorporated in India; bonds/units issued by Infrastructure Debt Funds, Perpetual debt instruments and debt capital instruments issued by banks in India and shares in Public Sector Enterprises being dis-invested by the Government. According to the terms of the same Schedule, a NRI or an Overseas Corporate Body may, without limit, purchase on non-repatriation basis, dated Government securities (other than bearer securities), treasury bills, units of domestic mutual funds, units of Money Market Mutual Funds in India, or National Plan/Savings Certificates. However, NRIs have not being given the permission to invest in small savings or Public Provident Fund (PPF).
The Government, in order to promote NRIs to bring in money into India, extended some more facilities to them. Banks are free to determine the interest rates on both savings deposits and term deposits of maturity of one year and above under the Non-Resident External (NRE) deposits and savings deposits under Non-Resident Ordinary (NRO) account. An NRE account is one which can be opened only by the non-resident himself and not through the holder of the power of attorney.
Only NRIs can become joint account holders in the case of NRE account. On the other hand, NRO accounts may be held jointly with residents and /or with NRIs. Along with this, the banks may also sanction Rupee loans in India or foreign currency loans outside India to either the account holder or third party to the extent of the balance in the NRE/ Foreign Currency Non Resident (Bank) account, subject to the margin requirements. To help NRIs to maintain FCNR deposits in other currency as well, since October 2011, FCNR (B) accounts have been permitted to be opened in any freely convertible currency. Moreover, NRIs are, since September 2011, also eligible to open NRE/FCNR account with resident.
The Government has also set up ‘Invest India’, a joint venture company between the Department of Industrial Policy and Promotion and Federation of Indian Chambers of Commerce and Industry, as a not-for-profit, single window facilitator, for prospective overseas investors, to act as a structured mechanism for attracting investment. On the other hand, the Ministry of Overseas Indian Affairs has established Overseas Indian Facilitation Centre to facilitate potential NRIs and overseas corporate bodies of overseas Indians which want to invest in India. OIFC has organised several investment and interactive meets/roadshows in different countries. It has also organised ‘Market Place’ during the annual Pravasi Bharatiya Divas event in India. The annual and regional PBDs have also provided a platform for facilitation of investment by overseas Indians.
(PIB Features.)

Read more / Original news source: http://manipur-mail.com/investment-opportunities-for-nris-in-india/

N. Ao ,Director (PR), Ministry of Defence.
India today handed over a Dornier-228 surveillance aircraft to Seychelles. Manufactured by the Hindustan Aeronautics Limited (HAL), the Dornier-228 has proved itself as a robust surveillance flying machine. HAL manufactures this aircraft under licence agreement with the erstwhile Dornier GmbH of Germany at its Transport Aircraft Division, Kanpur, and has world-wide unfettered sales and marketing rights. Along with the airframe, engines and several of the systems and avionics are also produced in house at various Divisions of HAL ensuring single window life-time support to the customers. The cockpit is designed to accommodate two crew members and is fitted with duplicate controls. The cabin can accommodate 19 passengers in commuter configuration.
HAL-DO-228 owing to its highly efficient design philosophy and world class workmanship has been configured for variety of roles. It can be used as Regional Airliner, Air Taxi, for VIP/Executive Transport, Maritime Surveillance, Reconnaissance, Intelligence warfare and for Troop Transport, Para Jumping, Pollution detection and control, Search and Rescue, Casualty evacuation/Ambulance, Cargo and Logistics Support, Calibration of Airport Nav-aids, Geographical surveys, Aerial photography, Anti-submarine roles and as Observer training. Owing to these features, this aircraft is the proven workhouse of Indian Air Force, Coast Guard and Navy. National Coast Guard of Mauritius also utilizes two HAL supplied DO-228s for surveillance of their coast line and VIP transport.
The versatility of HAL-DO-228s are due to several in-built features-highest fuel carrying capacity in its class (2850 litres) due to integral fuel tanks in wings, low structural weight ensured through use of advanced composite materials, high wing design for unobstructed view and radar coverage, wide wheel base for better stability, short take-off and landing capability. The aircraft can take off from around 700 m and land within 575 m essentially required for operations from short and semi-prepared airfields, sturdy landing gears, rectangular cabin offering more head space for passengers and mounting space for equipment in case of special mission configuration as opposed to circular cabin, low floor level and wide door for easy loading/unloading of cargo, flight openable roller door, four wing hard points for mounting of external loads upto 1030 kg, optimum performance at normal cruising altitude for short haul applications enabled by the revolutionary design of wing aerofoil.
HAL has fitted several role specific equipment on this aircraft to meet the specialized requirement of customers. The maritime aircraft is equipped with combination of 360 deg Surveillance Radar, Forward Looking Infra Red System, Electronic Surveillance Measures System, Pollution Detection and Control Equipment, Satellite Communication, Data Link, Speech Secrecy, Traffic Collision and Avoidance System, Enhanced Ground Proximity Warning System and host of other customer specified sensors.
HAL-DO-228 production in India was launched with Vayudoot, the first regional airlines of the country. Vayudoot extensively utilized its fleet of 10 aircraft covering almost all parts of the country and at one point of time achieved highest utilization of DO-228s among all carriers throughout the world. Vayudoot DO-228s were configured to carry 19 passengers as standard fitment, a small galley and functional toilet.
The world over it has been experienced that for a sustainable growth in passenger traffic, development of regional air routes is of paramount importance. Hub and spoke network is an established model wherein the regional traffic is built at selected hubs through regional spokes. The hubs thus created would fall on trunk routes catered by large airlines. The regional routes are best served initially by a smaller turbo-prop aircraft of around 19 seater category.
Regional air routes in India are now again poised for growth. HAL-DO-228s are the ideal aircraft for regional applications supported with previous experience, availability of aircraft and its maintenance infrastructure within the country. Discussions are underway with prospective operators.
To keep the aircraft contemporary with latest technology developments HAL continuously strives through its strong research and design base, to develop and integrate new modifications. The methodology ensures obsolescence free product, ease of maintenance and high serviceability for the operator. The aircraft cockpit is being reconstructed with fully digital glass cockpit and will be on display during Aero India in Bangalore scheduled from 6th–11th Feb 2013. In addition several other modifications like digital auto-pilot, upgraded avionics and other systems are also on the cards.
Fuelled by the growth prospects of this aircraft, HAL has also set eyes on export market. While the full aircraft structures are already being exported to Germany for assembly and supply to world-wide market, efforts are underway to achieve direct exports. The company is making efforts to exploit conducive military markets in Mauritius, Nepal, Vietnam, South Africa, Afghanistan and Columbia. Efforts are also to penetrate civil export markets that are suited for HAL-DO-228s.
(PIB Feature).

Read more / Original news source: http://manipur-mail.com/dornier-228-a-robust-surveillance-aircraft/