Red Ribbon Advisory Services (RRAS), part of UK-based Red Ribbon Asset Management Plc. has received the Foreign Account Tax Compliance ActÂ (FATCA) approval, enabling American investors to invest in RRASâ€™ incubated projects in India.
FATCA is a United States legislation that primarily aims to prevent tax evasion by US taxpayers by using non-US financial institutions and offshore investment instruments.
Currently Red Ribbon has incubated 2 projects namely Modulex; countryâ€™s first full fit-out steel modular buildings and Eco Hotels; worldâ€™s first carbon neutral hotel brand.Red Ribbon plans to raise Rs. 60 crores collectively, for these two projects.
This move has the potential to provide a huge fillip to PM Modiâ€™s â€˜Make in Indiaâ€™ initiative. In February, 2016 RRAS announced creation of 1000 jobs through the commencement of their Modulex factory as part of PM Modiâ€™s â€˜Make in Indiaâ€™ initiative. The factory that started production in March, 2016 has been built at a cost of Rs. 100 crores.
The 2nd project Eco Hotels, aims to become the single largest organized budget hotel brand in India. With a plan to create 10,000 rooms by 2023, Eco Hotels will help address a significant market need for hotel rooms in India.
Commenting on this development, Mr. Suchit Punnose, Founder & CEO at Red Ribbon Asset Management Plc,Â said, “This approval will allow the American investors to not only invest in RRASâ€™ projects but also contribute towards the â€˜Make in Indiaâ€™ initiative. American investors are well informed about Modular technology and have seen it in operation in their home countries. I am sure this move will trigger a lot of inquiries from the American as well as Indian investors, thereby giving an extra push to our efforts.”