Para 7 - Tax exemption - European Economic Community International Institutional Partners (ECIIP) Scheme, 1993

Tax exemption. 7. (1) The tax exemption would be available to EEC only in respect of investments made out of ECIIP funds, which would be used by the EEC through partner institutions as seed money for promoting industrial enterprises with the European Investors hailing from EEC member countries in India. (2) The exemption from income-tax on dividend, interest and capital gains tax on disinvestment available to EEC under this Scheme will not be available in respect of the equity held by foreign investors hailing from EEC member countries, or the equity held by the ECIIP partner institutions out of their own funds. ANNEXURE Facility Facility Facility Facility (1) (2) (3) (4) Type of operation Identification of potential joint venture projects and partners. Operations prior to launching a joint venture. Financing of capital requirements. Human resource development : training and management assistance. Beneficiaries Chambers of commerce, professional associations, public agencies and ECIIP Financial Institutions, Individual companies may not benefit from facility 1. Companies, either individually or jointly, local or European, wishing to undertake a joint venture investment project. Joint ventures established by partners from EEC and from eligible countries. Both partners must have a meaningful participation. Investments in local companies which operate under a licensing and technical assistance agreement with an EEC company. Access The beneficiary may apply directly to the EEC or through a financial institution. Application to be made through a financial institution. Type of Finance Grant Interest free advance to be converted later either into a grant, a loan or equity. Equity holding Interest free loan or equity loan The financial institution must co- finance the projects. Amount Available Maximum of 10,000 ECU Maximum of 2,50,000 ECU Maximum of 10,00,000 Maximum of 2,50,000 ECU The maximum total support per project is l0,00,000 ECU Limits Up to 50 per cent of the cost Up to 50 per cent of the cost. 20 per cent of the capital of the joint venture. Up to 50 per cent of the cost.