However, the proposals approved in 1997-98 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 flows in 1997-98 have, however, been much less than the amount involved, an 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).

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

Between December1995 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 Indian 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 fieldof computer and software services. A large number of approvals have also been issued for setting up trading concerns for promoting exports in readymade garments, chemicals, jewellery, general merchandise, etc.

In the manufacturing sector, the leading sector attracting investments is drugs and pharmaceuticals, followed by chemicals, engineering goods and garments.