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"1. The Government have reviewed the present Guidelines relating to approval of foreign/technical collaborations under the automatic route and after careful consideration it has been decided that foreign financial/technical collaboration with previous ventures/tie-up in India would be subjected to the following guidelines:

I. Automatic route for FDI and/or technology collaboration would not be available to those who have or had any previous joint venture or technology transfer/trade-mark agreement in the same or allied field in India. RBI, therefore, have to stipulate necessary declaration before applications for the automatic route are taken on record.

2. The above procedure will form part of the approval procedures contained in the "Manual on Industrial Policy & Procedures In India"

published by SIA, Ministry of Industries, Government of India, which shall stand clarified accordingly in respect of foreign/technical collaborators with previous joint ventures/tie-up in India."

12. The Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Government of India, reviewed the guidelines notified vide Press No-18 (1998 Series) and issued Press Note-1 (2005 Series) on 12.01.2005, which contains new guidelines for approval of foreign/technical collaborations under the automatic route with previous ventures/tie-ups in India. Press Note-1 (2005 Series) is quoted here under:

1. The Government, vide Press Note 1 {2005 Series) dated 12.1.2005,notified fresh guidelines for approval of new proposals for foreign/technical collaboration under the automatic route with previous venture/tie up In India. According to these guidelines, prior approval of the Government would be required for new proposals for foreign Investment/technical collaboration, in cases where the foreign investor has an existing joint venture or technology transfer/trademark agreement in the same field in India.

"1. The Government have reviewed the present Guidelines relating to approval of foreign/technical collaborations under the automatic route and after careful consideration it has been decided that foreign financial/technical collaboration with previous ventures/tie-up in India would be subjected to the following guidelines:

I. Automatic route for FDI and/or technology collaboration would not be available to those who have or had any previous joint venture or technology transfer/trade-mark agreement in the same or allied field in India. RBI, therefore, have to stipulate necessary declaration before applications for the automatic route are taken on record. II. Investors of Technology to the suppliers of the above category therefore will have to necessarily seek the FIPB/PAB approval route for joint ventures or the technology transfer agreements (including trade-mark) giving detailed circumstances in which they find it necessary to set-up a new joint venture/enter into new technology transfer (including trade- mark).