FDI norms eased;FIPB can approve projects of up to Rs 12k cr

New Delhi, Feb 11 (PTI) To smoothen overseas fund flows
into the country, the Indian government Thursday liberalised
the FDI regime and empowered FIPB to approve projects
envisaging foreign equity investment of up to Rs 1,200 crore.

"This is the first major change and liberalisation after
1996 caping of Rs 600 core (FIPB's earlier limit)," Indian
Commerce and Industry Anand Sharma told reporters after the
CCEA approved the proposal mooted by his ministry.
Henceforth, only those foreign direct investment (FDI)
proposals, which envisage overseas equity participation of
over Rs 1,200 crore, will go the Cabinet Committee on Economic
Affairs, the highest government body on economic matters
headed by Indian Prime Minister Manmohan Singh.
Earlier, the Foreign Investment Promotion Board (FIPB),
a body under the Finance Ministry, was empowered to approve
projects up to Rs 600 crore.
With the changes in the FDI policy, Sharma said the
foreign companies will not be required to obtain no-objection
certificates (NOCs) from domestic firms for a second time for
raising investment in the ongoing projects.
As per the Press Note 1 of 2005, foreign companies needed
NOC from their domestic partners for taking up activities in
the same sector through joint venture or technical
collaboration with other entities (Press notes, which totals
up to 177, define the rules for FDI).
The policy change "is expected to save time and efforts
for the FIPB/CCEA and also expedite foreign investment
inflow", Indian Home Minister P Chidambaram said briefing
reporters about the CCEA meeting. MORE PTI RR
MYR


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