The finance ministry can now approve foreign direct investment (FDI) proposals up to Rs 1, 200 crore and only bigger proposals will have to go to the Cabinet Committee on Economic Affairs (CCEA).
The Foreign Investment promotion Board (FIPB) can approve proposals worth Rs 600 to Rs 1,200 crore.
The approval is expected to save time and also expedite foreign investment inflow.
The Department of Industry Policy and Promotion (DIPP) has notified the changes in the Foreign Direct Investment (FDI) rules.
According to the DIPP Press Note, cases below Rs 1,200 crore can be referred to the CCEA in special cases by the FIPB or the Finance Minister.
The government has launched a draft note to consolidate the plethora of rules and norms governing foreign investment in the country under one comprehensive policy document. The final consolidated FDI rules will be issued shortly and the rules will be reviewed every six months.
The new FDI norm was approved by the CCEA on February 11, which would now consider cases of foreign equity above Rs 1,200 crore.