The proposals approved in 1997-98, however, involved a higher equity and loan amount of $450.11 million and guarantees worth $111.28 million, up from $284.15 million worth of equity and loan and $183.35 million worth of guarantees in 1996-97.

The actual investment outflows in 1997-98 have, however, been much less than the amount involved, a RBI release said on Saturday. During 1996-97, the outflows amounted to $214.47 million (provisional). In the last fiscal year up to February, the outflows were to the tune of $110.19 million (provisional).

"There is a generally a time lag between the approval and the actual outflows as the Indian companies have to obtain clearances from other authorities in the country as well as overseas host countries," the RBI release said. The RBI approval is valid for two years.

Between December 1995 and March 1998,the RBI has approved 542 proposals for overseas investment. The list includes 390 fresh proposals and 152 existing cases in joint ventures (JVs) and wholly-owned subsidiaries (WOSs) by domestic corporates. These proposals involve total equity and loan of $766.28 million besides guarantees -- issued by banks and corporates -- to the tune of $298.63 million.The RBI cleared 238 proposals--involving equity and loan of $109.28 million--under the fast-track route while the rest were approved by the special committee. Under the exchange earners' foreign current (EEFC) fast track route, being operated at the level of authorised dealers between August 1997 and end-March 1998, 10 cases involving equity remittances of $11.90 million and guarantees worth $25.75 million were cleared, the release said.The overseas investments approved by the RBI are diversified both in terms of lines of activities and countries of location of the overseas companies. A substantial number of approvals are in the field of computer andsoftware services. A large number of approvals have also been issued for setting up trading concerns for promoting exports in readymade garments, chemicals, jewellery and general merchandise.In the manufacturing sector, the leading sector attracting investments is drugs and pharmaceuticals, followed by chemicals, engineering goods and garments.In respect of destination of Indian investments, the United States tops the list followed by the UK, Singapore, the UAE and Mauritius which together constitute approximately 53.5 per cent of the total fresh approvals granted in 1997-98.The centre had in August 1995 delegated to the RBI the powers to approve Indian direct investments in joint ventures and wholly-owned subsidiaries abroad effective December 1, 1995.Under the existing guidelines, investments are cleared by the RBI up to 25 per cent of the annual average export/foreign exchange earnings of the Indian promoter company in the preceding three years, subject to an overall limit of $4 million (Rs 25 crore inrespect of Indian rupee investment in Nepal). In terms of modifications announced in August 1997, two more fast track windows in addition to the fast track route of the RBI have been introduced.