Hemanth, who is interested in making overseas investment (financial commitment) in an energy sector in Vietnam, which exceeds the prescribed limit of the net worth of his Company as per the latest audited Balance Sheet.

Overseas investment in the energy and natural resources sector exceeding the prescribed limit of the net worth of the Indian companies as on the date of the last audited balance sheet falls under the approval route and accordingly needs RBI approval. Reserve Bank would inter alia, take into account the following factors while considering such applications: Prima facie viability of the Joint Venture/Wholly Owned Subsidiary outside India; Contribution to external trade and other benefits which will accrue to India through such investment (or financial commitment); Financial position and business track record of the India Party and the foreign entity, and Expertise and experience of the India Party in the same or related line of activity as of the Joint Venture/Wholly Owned Subsidiary outside India.