Anchorage Infrastructure Investment Holding’s FDI request of Rs 15,000 crore has been approved by the CCEA.

Anchorage Infrastructure Investment Holding’s FDI request of Rs 15,000 crore has been approved by the CCEA.

The government approved a Rs 15,000-crore foreign direct investment (FDI) application for infrastructure investment from Anchorage Infrastructure Investment Holding Ltd, a subsidiary of a Canadian pension fund. The FDI proposal was accepted by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, for investment in infrastructure and construction-development industries.

Transport and logistics, as well as downstream investment in the airport sector and aviation-related industries and services, may be among them.

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According to an official statement, the transaction also comprises the transfer of a stake of Bangalore International Airport Limited to Anchorage and a Rs 950 crore investment by the 2726247 Ontariao Inc in Anchorage Infrastructure Investment Holding Ltd.

OAC is the administrator of OMERS, one of Canada’s largest defined benefit pension plans, and 2726247 Ontariao Inc is a wholly-owned subsidiary of OAC.

Tax Benefits Available For Startups 

The investment will provide a significant boost to the infrastructure and building industries, as well as the airport industry. It will bolster the Indian government’s ambition to construct world-class airports and transportation infrastructure through private partnerships, according to the statement.

The investment will also provide a major boost to the recently announced National Monetisation Pipeline, according to the announcement (NMP). It will assist support the leasing of state-owned infrastructure assets to private operators, which includes assets such as highways, trains, airports, sports stadiums, power transmission lines, and gas pipelines.

Anchorage Infrastructure Investment Holding Ltd proposes to invest downstream in some of the NMP-affected sectors.


The investment will also result in direct job creation, according to the statement, because the sector in which Anchorage Infrastructure Investment Holding Ltd proposes to make downstream investments is capital- and employment-intensive.

The investment will also create indirect jobs in the construction and related industries, according to the statement.

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Financial Liability & Asset (FLA) Annual Return

As more and more Indian entities are bringing in foreign investors in the lure of cheaper, easily available, and sufficient funds Foreign Direct Investment (FDI) has become a routine affair in the Indian economy.
Similarly, Overseas Direct Investment (ODI) which means Indian Entities investing outside India have also increased in number manifold (though still small in number as compared to FDI).

Foreign Liabilities and Assets (FLA) Return is an Annual Return that must be filed by entities that have received FDI and/or made overseas investments in any of the previous years, including the current year, i.e., entities with Foreign Assets or Liabilities on their Balance Sheets.


Annual return on Foreign Liabilities and Assets (FLA) is required to be submitted by all the companies which have received FDI and/or made overseas investment in any of the previous year(s), including the current year (July 15 every year).

To monitor these transactions RBI have come up a few compliances, one such being FLA.

FLA

FLA is an annual return prescribed under FEMA regulations and is applicable to all companies/Firms who have received FDI during the year or who have made ODI during the year and these transactions are outstanding at the end of the year. This means that the FDI/ODI has to be still in the books of the entity and not squared off during the year.

FLA

The due date is 15th July (Extended to 31st July 2020 this year). In case the entity’s books are still unaudited then provisional figures have to be uploaded by the due date. In case there are any changes after the filing of provisional figures then the company shall file a revised FLA return based on audited accounts by the end – September.

The return has to be mailed to the prescribed email of the RBI by the CS/CFO/Directors of the company from the registered email id.

Penalty of thrice the amount of sum of FDI/ODI or Rs 2 lakhs with additional Rs 5000 per day if delay is continuing.

India’s budget will draw more FDI

India’s budget will draw more FDI: Industry Leaders US

Nirmala Sitharaman Presenting her second budget to Parliament on Saturday,  gave tax breaks to foreign investors and especially to those including sovereign wealth funds willing to place a long-term bet on the economy.

She said the budget was aimed at boosting incomes and increasing purchasing power, stressing that the fundamentals of the economy were strong and inflation was well contained.

WASHINGTON: Finance Minister Nirmala Sitharaman’s 2020-21 budget will improve the ease of doing business India and draw more foreign direct investment, said US industry leaders.

“After a slowdown in growth, India’s global investment outlook remains strong and therefore the budget was a great opportunity to make global sentiment a reality.”

Measures such as simpler GST refunds, no audit requirement for MSMEs with up to Rs 5 Cr turnover, instant issuance of PAN by furnishing Aadhaar, pre-filing tax returns, faceless appeals and appraisals will further improve India’s reputation from a business perspective that is simple to do. Such moves together demonstrate that the tax policy of India is moving in the right direction.

Noting that e-commerce is a bright spot for the Indian economy and expected to reach USD 84 billion by 2021, Aghi urged the government to rethink its decision to place TDS on e-commerce at one percent.

While the USIBC hoped that the budget proposal would see an increase in the foreign direct investment (FDI) allowance for the insurance sector, “we look forward to continued engagement with the government on reforms needed to bring fresh investment into a critical sector”.

Classifying the budget as an all-inclusive, growth-oriented and disruptive budget, Karun Rishi, president of the U.S. Indian Chamber of Commerce, said he stressed the aim of the Indian government to build a strong foundation for the goal of making India a 5 trillion dollar economy by 2025.

“Nirmala Sitharaman has provided a huge boost to the business morale and entrepreneurship of the country. National Logistics Policy, which is much needed, will promote tourism, manufacturing and job creation. Increased attention to the infrastructure sector is a welcome step”.

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