CONTINUED...........................................
Procedure for obtaining Government approval- FIPB
The Foreign Investment Promotion Board (FIPB) considers approving all proposals for foreign investment, which requires Government approval. The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration. Other than NRI Investments and 100% EOU, applications seeking approval for FDI in form FC-IL, should be submitted to the Department of Economic Affairs (DEA), Ministry of Finance. FDI from NRI & for 100% EOUApplications for FDI with NRI Investments and 100% EOU should be submitted to the Public Relation & Complaint (PR&C) Section of Secretariat of Industrial Assistance (SIA), Department of Industrial Policy & Promotion. Proposals requiring Government’s approvalApplication for proposals requiring prior Government's approval should be submitted to FIPB in FC-IL form. Plain paper applications carrying all relevant details are also accepted. No fee is payable.
All the proposals submitted to FIPB seeking FDI approval should include the following information:
Whether the applicant has had or has any previous/existing financial/ technical collaboration or trade mark agreement in India in the same or allied field for which approval has been sought;
If an applicant has any approved proposal earlier, details thereof and the justification for proposing the new venture/ technical collaboration (including trademarks) has to be submitted.
Applications can also be submitted with Indian Missions abroad who will forward them to the Department of Economic Affairs (DEA) for further processing.
Foreign investment proposals received in the DEA are placed before the Foreign Investment Promotion Board (FIPB) within 15 days of receipt.
The decision of the Government in all cases is usually conveyed by the DEA within 30 days of submission of the FDI proposal.
Liberalization of FDIBeside 100 percent relaxation of FDI in real estate, the government policies on FDI also offer opportunities for foreign investors to invest in different sectors. This includes 100 percent in power trading, processing, development of new airports, laying of natural gas pipelines, petroleum infrastructure and warehousing of coffee and rubber. Limit for telecoms services firms have been raised from 49 per cent to 74 per cent.
Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. And this has also brought about a conspicuous interest by towards investments in the Indian hospitality sector. Industry reports suggest the inflow of about US$ 500 million into the real estate sector over the past six months and is expected to rise to a massive $ seven to eight billion over the next 18-30 months.
TO BE CONTINUED TOMORROW..........................
Procedure for obtaining Government approval- FIPB
The Foreign Investment Promotion Board (FIPB) considers approving all proposals for foreign investment, which requires Government approval. The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration. Other than NRI Investments and 100% EOU, applications seeking approval for FDI in form FC-IL, should be submitted to the Department of Economic Affairs (DEA), Ministry of Finance. FDI from NRI & for 100% EOUApplications for FDI with NRI Investments and 100% EOU should be submitted to the Public Relation & Complaint (PR&C) Section of Secretariat of Industrial Assistance (SIA), Department of Industrial Policy & Promotion. Proposals requiring Government’s approvalApplication for proposals requiring prior Government's approval should be submitted to FIPB in FC-IL form. Plain paper applications carrying all relevant details are also accepted. No fee is payable.
All the proposals submitted to FIPB seeking FDI approval should include the following information:
Whether the applicant has had or has any previous/existing financial/ technical collaboration or trade mark agreement in India in the same or allied field for which approval has been sought;
If an applicant has any approved proposal earlier, details thereof and the justification for proposing the new venture/ technical collaboration (including trademarks) has to be submitted.
Applications can also be submitted with Indian Missions abroad who will forward them to the Department of Economic Affairs (DEA) for further processing.
Foreign investment proposals received in the DEA are placed before the Foreign Investment Promotion Board (FIPB) within 15 days of receipt.
The decision of the Government in all cases is usually conveyed by the DEA within 30 days of submission of the FDI proposal.
Liberalization of FDIBeside 100 percent relaxation of FDI in real estate, the government policies on FDI also offer opportunities for foreign investors to invest in different sectors. This includes 100 percent in power trading, processing, development of new airports, laying of natural gas pipelines, petroleum infrastructure and warehousing of coffee and rubber. Limit for telecoms services firms have been raised from 49 per cent to 74 per cent.
Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. And this has also brought about a conspicuous interest by towards investments in the Indian hospitality sector. Industry reports suggest the inflow of about US$ 500 million into the real estate sector over the past six months and is expected to rise to a massive $ seven to eight billion over the next 18-30 months.
TO BE CONTINUED TOMORROW..........................
2 comments:
FDI is a means to supplement domestic investment for achieving higher level of economic development and providing opportunities for technological upgradation as well as access to global managerial skills and practices. With India allowing FDI up to 100% in many sectors, power, petroleum and natural gas, services, construction and real estate have emerged as the preferred destinations for foreign investors, who have pumped in $20.8 billion in these areas in the last four years. The real estate sector which was thrown open in 2004-05 saw FDI picking up slowly in the initial two years, but grew substantially in 2007-08 to $2.17 billion. The government has eased FDI norms for a host of sectors, but has kept areas such as retail, (except single brand retailing), atomic energy, lottery, gambling and betting, business of chit fund and trading in Transferable Development Rights (TDRs) out of the ambit of foreign investors.It had allowed 100% FDI in sectors such as titanium mining, maintenance, repair and overhauling facilities for aircraft.For more view- realtydigest.blogspot.com
thanks for ur comments
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