Govt sets up unit to attract FDI | business | Hindustan Times
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Govt sets up unit to attract FDI

business Updated: Sep 10, 2009 22:34 IST
HT Correspondent

The government on Thursday approved the setting up of a new entity ‘Invest India’ tasked with the mandate of facilitating and promoting foreign investment in India.

The not-for-profit company will be a joint venture between the Centre, Federation of Indian Chambers of Commerce and Industry (FICCI) and the state governments.

“The unique feature of this company is the partnership between the private sector organisation and the government. This is, unlike anywhere else in the world and seeks both to leverage the synergies of all three as well as address their investment priorities,” commerce and industry minister Anand Sharma said.

“It will assist the government towards projecting India as an attractive investment destination for foreign investors and facilitating them in identifying and realizing investment opportunities in India,” it said.

Initially, FICCI will hold 51 per cent share in the compamy, DIPP will have 49 per cent share to begin with. DIPP's share will be reduced overtime to 35 per cent of paid up capital with induction of fresh equity by the 28 state governments, with each one holding a share of 0.5 per cent equity.

“The company will act as the first reference point for any investor interested in India and will also facilitate in setting up business within the country, by making available sector wise consultants and coordinating with the state government on feasible measures,” Sharma said.