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The guidelines prescribed by Press Note 18 (1998 series) require that prior approval of the government be obtained in the cases covered under Press Note 18 (1998 series). There is no ambiguity in the guidelines, Shri Kamal Nath, Union Minister of Commerce & Industry, said in a written reply in the Rajya Sabha today.
Press Note 18 (1998 series) issued on 14/12/1998 contains the guidelines pertaining to approval of foreign / technical collaborations under the automatic route with previous ventures / tie-ups in India. According to these guidelines, foreign financial / technical collaborators who have or had any previous joint ventures or technology transfer / trademark agreement in India require prior government approval to set up a new venture / enter into new technology transfer agreement (including trademark) in the same or allied field.
While seeking approval of the government, such investors / technology suppliers have to provide requisite justification that the new proposal would not in any way jeopardise the interests of the existing joint venture or technology / trademark partner or other stakeholders. The provisions of the Press Note do not apply to Mining & Information Technology sectors and Investment made by international financial institutions such as Asian Development Bank (ADB), International Financial Corporation (IFC), Commonwealth Development Corporation (CDB) etc.
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