Mar 13, 2008

Economy News 13th March 2008 - Govt notifies increase in FDI limits

Govt notifies increase in FDI limits

New Delhi: Giving effect to the Cabinet decision on relaxing FDI policy, the government on Wednesday issued six notifications raising foreign investment limits in sectors including civil aviation, petroleum refinery and commodity exchanges. The other sectors for which the FDI norms have been relaxed are industrial parks, credit information companies and titanium mining.

The press notes have been issued by the Department of Industrial Policy and Promotion following the decision of the Union Cabinet in January to remove restrictions on foreign investment in various sectors. The government has raised FDI limit in public sector refineries and commodity exchanges to 49 per cent. FDI up to 100 per cent would also be allowed in mineral separation of titanium-bearing minerals and ores, its value- addition and integrated activities subject to prior government approval.

In the civil aviation sector, the press note said 100 per cent FDI would be allowed under the automatic route for greenfield projects, while in existing projects, FDI up to 100 per cent would be allowed with prior government approval. As regards commodity exchanges, the foreign institutional investors (FII) would be allowed to attain a stake of up to 3 per cent while foreign investors can take up to 26 per cent.


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