MLK Ltd. is planning to expand its business both at domestic level and global level and therefore its Board has decided to: (a) enter into joint venture with TMK GmbH of Germany. This proposal will have an investment of

External Commercial Borrowings (ECB) proceeds can be utilised for capital expenditure in the form of: Import of capital goods including payment towards import of services, technical know-how and license fees, provided the same are part of these capital goods; Local sourcing of capital goods; New project; Modernization /expansion of existing units; Overseas direct investment in Joint ventures (JV)/ Wholly owned subsidiaries (WOS); Acquisition of shares of public sector undertakings at any stage of disinvestment under the disinvestment programme of the Government of India; Refinancing of existing trade credit raised for import of capital goods Payment of capital goods already shipped/imported but unpaid; Refinancing of existing ECB provided the residual maturity is not reduced. Since in the given case MLK Ltd. Is planning to use the proceeds for entering into JV and acquisition of shares of Public Sector Undertaking, it can adopt the route of ECB.