The Cabinet Committee on Economic Affairs on Thursday liberalised the foreign direct investment norms for non-resident Indians and overseas citizens of India (OCI) in order to help enhance capital inflows to the country.
“The decision that NRI includes OCI cardholders as well as PIO cardholders is meant to align the FDI policy with the stated policy of the government to provide PIOs and OCIs parity with NRIs in respect of economic, financial and educational fields,” said an official release after the meeting, which was chaired by Prime Minister Narendra Modi.
Further, “The decision that NRIs investment under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will be deemed to be domestic investment made by residents, is meant to provide clarity in the FDI policy as such investment is not included in the category of foreign investment,” said the release, adding that it would increase investments across sectors and foreign exchange remittances to the country.
As per the proposal by the department of industrial policy and promotion, any investment made by NRIs. OCIs and PIOs from their rupee account in India, will not be treated as foreign investment. An official said that the non-repatriable NRI funds would now be treated as domestic investments.
The government wants to channelise the funds of NRIs, who now have set up large businesses abroad, by treating non-repatriable investments by NRIs as domestic investment.
The Modi government, has liberalised FDI policy for sectors such as defence, railways, construction development, medical devices and insurance, and is keen to tap NRIs, OCIs and PIOs. During the April-February period of FY15, FDI rose by 39 per cent to $ 28.81 billion as against $ 20.76 billion in the same period last fiscal.
Rs10,500 cr for two urea plants
New Delhi: The Union Cabinet on Thursday approved revival of a defunct unit of the Fertiliser Corporation of India Limited (FCIL) at Sindri in Jharkhand for an estimated investment of Rs 6,000 crore and setting up of a greenfield ammonia-urea complex in Assam for Rs 4,500 crore.
This Sindri unit closed since 2002 would be revived through bidding route. State-run steel maker SAIL and National Fertilisers Limited had earlier been asked to develop the Sindri plant, but the steel company backed out citing lack of contiguous and encroachment free land. ENS