The union cabinet today approved a proposal of the department of industrial policy and promotion of the ministry of commerce and industry to permit all payments for royalty, lump sum fee for transfer of technology and use of trademark/brand name to use the automatic route without any restrictions.
This would, however, be subject to FEMA (Current Account Transaction) Rules, 2000.
Technology importers would also have to submit a detailed report on the nature/details of technology and the amount paid for it.
"A suitable post reporting requirement would be devised within three months in consultation with the department of economic affairs and the Reserve Bank," the release said.
The government has hitherto permitted foreign technology transfers involving payment of lump sum fee of $2 million and royalty of 5 per cent on domestic sales and 8 per cent on exports under the automatic approval route.
Beyond these limits, prior permission of the government (Project Approval Board) was required.