Foreign investors now have a reason to cheer. The government on Thursday announced easing of investment norms to boost FDI in the country.
According to the new rules, investments with a total equity inflow of over Rs 1,200 crore will now only go to the CCEA for approval against earlier limit of Rs 600 crore. Also, existing foreign investors with the required initial approvals have been exempted from seeking fresh nods in certain cases including where the sectoral caps have been changed
and where the sector has been brought under the automatic route after the intial approvals were granted.
Anand Sharma, the commerce minister, said, “This is aimed at simplifying the process for application and approval of FDI."
And this comes as yet another step from the commerce ministry to attract greater foreign investment. Earlier, recently the government had announced a one-stop shop for FDI policy instead of the 160 different press notes.
In fact, the steps seem to paying off given that FDI Inflow for the month of December 2009 was up 13 per cent to $1.54 billion as against last year.
Thursday, February 11, 2010
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