The officials told Business Standardthat there was a proposal to amend the no-objection certificate clause in Press Note 18 to put tabs on local joint venture partners that are bankrupt or declared sick, or those who have closed operations or have a poor financial record.
As per Press Note 18, a foreign investor is required to procure no-objection certificates from its former or existing Indian partners in order to set up a new subsidiary.
Both financial and technical collaborations are covered in this policy, which was formulated to protect Indian companies from their richer foreign partners.
However, several foreign firms have drawn the government
