document.writeln("

Transfer of financial services company shares to come under automatic route
New Delhi: By way of liberalising the current foreign direct investment (FDI) regime, the Government is planning to bring transfer of shares of financial services companies from resident owners to foreign investors under the automatic route. The new provision would apply to banking, insurance and non-banking finance companies (NBFCs).

At present, permission has to be taken from the Foreign Investment Promotion Board (FIPB) to transfer shares held by resident shareholders to foreign investors.

The Government has also finalised plans to formally remove the mandatory 26 per cent disinvestment in favour of resident Indian shareholders in select sectors.

As of now, 100 per cent FDI is allowed in tea plantation, B2B e-commerce and actual trading and marketing of petroleum, subject to the condition that the foreign investor must divest 26 per cent stake in the company in favour of Indian shareholders within a period of five years.

The Government feels that such a condition means, FDI can only be 74 per cent, and since this does not send right signals to the investing community, this condition should be deleted.

The Government has also decided to rationalise the existing FDI norms in seven sectors — airports, coal and lignite mining, mining of diamond and precious stones, petroleum, trading, power trading, and coffee and rubber processing.
Back to News Review index page  

Left parties to submit proposals on WTO discussions to Govt.
Thiruvananthapuram: Left parties are submitting their proposals to the UPA Government to ensure that national concerns are addressed properly at the Hong Kong round of WTO scheduled for the next month, CPI national secretary D Raja said.

Raja said the Left would continue to oppose the UPA Government's 'deviations' from the Common Minimum Programme and the India-US defence co-operation framework. He said 'increasing American interference' in economic policies harmed India's national interests.

On the Volcker Committee report, Raja said there was no need for the Congress to be apologetic as the report was not a final verdict deciding the nation's destiny.
Back to News Review index page  

Maran: Three pronged strategy to increase broadband penetration
New Delhi: The IT and communications minister, Dayanidhi Maran said the Government was targeting a three-pronged solution on the issue of poor offtake of broadband services, low computer penetration, connectivity and good content.

He said, "There is a criticism that broadband penetration is low in the country... We are looking at a three-point solution - affordable PCs, good connectivity and good content. Content is key to the proliferation of broadband which we lack," Maran said at the launch of the national portal of India, india.gov.in.

He said consumers have to be convinced of quality, language and choice content before they go in for broadband connections. So, instead of saying broadband has not taken off, the focus should be on encouraging content creation, he said.

Maran's remarks came after TRAI demanded opening up of last mile access of BSNL and MTNL on the ground that broadband penetration is likely to miss the set target due to poor take-off.

There are seven lakh broadband connections in India at present. The official target was 30 lakh by December 2005.
Back to News Review index page  

Snow: Liberalise financial sector to prevent slowdown in growth
New Delhi: "India may head for slowdown in economic growth if the pace of reform remains sluggish and the country dawdles over further liberalising the financial sector," said visiting U.S. Treasury Secretary John Snow.

Snow, who is in India till Thursday, said the benefits of economic reform have to spread and reach all people, and that the real benefits of liberalization will result in lifting the rural areas. He said that though there would be opposition to financial and economic reforms because of short term displacement and disruption, ultimately, a political constituency for reforms would be created.

Snow felt that India had the potential to become an economic powerhouse and its natural advantages such as its pool of skilled workers and its deep democratic traditions make it poised to take a leading role in the global economy.

He urged India to put in place an effective dispute settlement mechanism saying this would give added confidence to investors looking to place their money on India.
Back to News Review index page  

India portal launched
New Delhi: A one-stop India portal india.gov.in has been launched. The portal would provide one-stop access to information and services being provided by the government.

Developed by the National Informatics Centre and Department of Information Technology, the portal is a mission mode project under the national e-governance plan (2003-07) that will lay the foundation and provide the impetus for long-term growth of e-governance in the country.

Laid out in a colour-coordinated and viewer-friendly style, the portal has sections on the government and the country as well as sectors like agriculture, commerce, communications, defence, education and rural development.

Space has also been provided for an opinion poll, the current one being on whether the Right to Information Act that has just come into force will enhance transparency in government functioning.

There are comprehensive sections on directories, government documents like the budget, forms of central and state governments, maps and tenders.
Back to News Review index page  

Telecom: Domestic, overseas license fees slashed
New Delhi: India has cut the entry fee for national long-distance telecom services to Rs2.5 crore from Rs10 crore to reduce costs and facilitate growth in the sector, Telecom Minister Dayanidhi Maran said.

The entry fee for international long-distance services has also been cut to Rs2.5 crore from Rs25 crore. The annual license fee for both services had been reduced to six percent of annual gross revenue from 15 percent.
Back to News Review index page