Reforms in FDI Policy in insurance, pensions, asset reconstruction companies, stock exchanges

While presenting the General Budget 2016-17 in Lok Sabha today, finance minister Arun Jaitley said that to promote private participation in infrastructure projects, Public Utility (Resolution of Disputes) Bill will be introduced; and guidelines for renegotiation of PPP agreements will be issued, without compromising transparency.

A new credit rating system for infrastructure projects will also be introduced.

Announcing changes in FDI Policy, Jaitley said that reforms in FDI policy in areas of insurance and pensions, asset reconstruction companies and stock exchanges have been proposed. 100 per cent FDI is to be allowed through FIPB route in marking of food products produced and manufactured in India. This will benefit farmers, give impetus to food processing industry and create vast employment opportunities.

He further said that guidelines for strategic disinvestment have been approved and will be spelt out. Individual units of CPSEs can be disinvested to raise resources for investment in new projects. We will encourage CPSEs to divest individual assets like land, manufacturing units, etc to release their value for making investment in new projects.

The NITI Aayog will identify the CPSEs for strategic sale, he said.