Interviews
Robust industrial growth recorded in 2006-07
27 Mar '07
4 min read
Highlighting the major policy initiatives of DIPP, the Report says that for the first time in last 15 years, a comprehensive review of the FDI policy was undertaken. Some of the major policy changes on the FDI front were:
• Change of route - FDI has been allowed up to 100 per cent under the automatic route for distillation and brewing of potable alcohol; manufacture of industrial explosives; manufacture of hazardous chemicals; manufacturing activities located within 25 km of the Standard Urban Area limits requiring industrial license under the IDR (Act), 1951; setting up of Greenfield airport projects; laying of natural gas/LNG pipelines, market study & formulation and investment financing in the petroleum sector; and cash & carry wholesale trading and export trading.
• Increase in equity caps – FDI caps have been increased to 100 per cent and automatic route extended to coal & lignite mining for captive consumption, setting up infrastructure relating marketing in Petroleum & Natural Gas sector, and exploration and mining of diamonds and precious stones.
• FDI in new activities – FDI has been allowed up to 100 per cent on the automatic route in power trading, and processing and warehousing of coffee and rubber. FDI has been allowed up to 51 per cent for 'single brand' product retailing, which requires prior Government approval. Specific guidelines have been issued for governing FDI for 'single brand' product retailing.
• Removal of restrictive conditions – Mandatory divestment condition for B2B e-commerce has been dispensed with.
• Procedural simplification – The transfer of shares from resident to non-residents including acquisition to non-residents including acquisition of shares in an existing company has been placed on the automatic route subject to sectoral policy on FDI.
• Equity caps on FDI are presently only on limited sectors viz. Up to 20% - FM Radio Broadcasting; Up to 26% -- Insurance, Defense production, Petroleum refining in the PSUs; Print and Electronic media covering news & current affairs; Up to 49% - Air Transport Services; Asset Reconstruction Companies; Cable network; DTH; Hardware for uplinking, HUB, etc; Up to 51% - Single Brand retailing of products; Upto 74% - Atomic Minerals; Private Sector Banking; Telecom services; Establishment & operation of Satellites.
• Change of route - FDI has been allowed up to 100 per cent under the automatic route for distillation and brewing of potable alcohol; manufacture of industrial explosives; manufacture of hazardous chemicals; manufacturing activities located within 25 km of the Standard Urban Area limits requiring industrial license under the IDR (Act), 1951; setting up of Greenfield airport projects; laying of natural gas/LNG pipelines, market study & formulation and investment financing in the petroleum sector; and cash & carry wholesale trading and export trading.
• Increase in equity caps – FDI caps have been increased to 100 per cent and automatic route extended to coal & lignite mining for captive consumption, setting up infrastructure relating marketing in Petroleum & Natural Gas sector, and exploration and mining of diamonds and precious stones.
• FDI in new activities – FDI has been allowed up to 100 per cent on the automatic route in power trading, and processing and warehousing of coffee and rubber. FDI has been allowed up to 51 per cent for 'single brand' product retailing, which requires prior Government approval. Specific guidelines have been issued for governing FDI for 'single brand' product retailing.
• Removal of restrictive conditions – Mandatory divestment condition for B2B e-commerce has been dispensed with.
• Procedural simplification – The transfer of shares from resident to non-residents including acquisition to non-residents including acquisition of shares in an existing company has been placed on the automatic route subject to sectoral policy on FDI.
• Equity caps on FDI are presently only on limited sectors viz. Up to 20% - FM Radio Broadcasting; Up to 26% -- Insurance, Defense production, Petroleum refining in the PSUs; Print and Electronic media covering news & current affairs; Up to 49% - Air Transport Services; Asset Reconstruction Companies; Cable network; DTH; Hardware for uplinking, HUB, etc; Up to 51% - Single Brand retailing of products; Upto 74% - Atomic Minerals; Private Sector Banking; Telecom services; Establishment & operation of Satellites.
Press Information Bureau
Popular News
Leave your Comments
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
