FIPB allowed to approve FDI up to Rs1,200 crore
11 Feb 2010
The cabinet committee on economic affairs (CCEA) today approved a proposal of the department of industrial policy and promotion of the ministry of commerce and industry to liberalise policy on foreign investment approval.
Accordingly, the Foreign Investment Promotion Board (FIPB) has been authorised to approve foreign investment proposals up to a value of Rs1,200 crore.
Only proposals involving total foreign equity inflow of more than Rs1,200 crore would be placed for consideration of the CCEA.
The recommendations of FIPB on proposals with total foreign equity inflow of and below Rs1,200 crore will henceforth be considered by the finance minister for approval.
So far, the FIPB has been recommending FDI proposals with total project cost of up to Rs600 crore. The finance minister approves FDI proposals on the recommendation of the FIPB while foreign investments above the value of Rs1,200 crore needed consent from the cabinet committee on economic affairs.
Further, in cases where prior approval of FIPB/CCEA for making initial foreign investment was taken, the government has done away with the requirement of further approvals for subsequent investments in select cases.
