FIPB gets nod to clear FDI up to Rs 1,200 cr
The finance ministry can now approve foreign direct investment (FDI) proposals up to Rs 1,200 crore, double the current ceiling of Rs 600 crore.business Updated: Feb 11, 2010 20:57 IST
The finance ministry can now approve foreign direct investment (FDI) proposals up to Rs 1,200 crore, double the current ceiling of Rs 600 crore.
Only bigger proposals will have to be referred to the Cabinet Committee on Economic Affairs (CCEA) for clearance.
The CCEA decision on Thursday doubles from Rs 600 crore, the size of FDI proposals that the Foreign Investment promotion Board (FIPB) — an arm of the finance ministry — can approve on its own.
“This is the first major change in the FIPB since 1996,” commerce and industry minister Anand Sharma said. “The changes will bring clarity, rationalisation and simplify the FIPB procedure. This will spur growth and make India an attractive investment destination and a manufacturing hub.”
During April to December 2009, India has attracted cumulative FDI inflows worth $21 billion (Rs 96,600 crore).
The government has prepared a draft note for consolidating the plethora of rules and norms that govern foreign investment in the country, under one comprehensive policy document.
The final consolidated FDI rules will be issued in March, and will be reviewed every six months thereafter.
India Inc welcomed the decision.
“This would indeed send a very strong signal to the world and boost global investors’ confidence in India,” said Amit Mitra, secretary general, of industry chamber FICCI.