The government on Friday raised the foreign direct investment (FDI) ceiling on FM radio to 26% from the current 20%, removed limitations of a compulsory lock-in-period and minimum build-up area for FDI in the construction industry when it builds old-age homes and educational institutions.
The increase in FDI ceiling for FM radio will ensure conformity of foreign investment limit in this sector with other similar activities in the information and broadcasting sector, a statement released by the commerce and industry ministry said.The government also allowed upto 100% FDI in apiculture or beekeeping, liberalised convertion of imported machinery and allowed "pledging of shares" by Indian companies that have raised external commercial borrowings (ECBs).
Besides, limitations of compulsory lock-in-period, minimum build-up area for FDI in the construction industry for old-age homes and educational institutions with immediate effect has been removed.
“These conditionalities perhaps posed a constraint to FDI coming into these areas since educational institutions such as schools, colleges, universities as well as old-age homes have their own special requirements which do not necessarily fit these conditionalities,” the statement said.
{{/usCountry}}“These conditionalities perhaps posed a constraint to FDI coming into these areas since educational institutions such as schools, colleges, universities as well as old-age homes have their own special requirements which do not necessarily fit these conditionalities,” the statement said.
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