‘FinMin looking at DIPP proposal to curb royalty payments’

The finance ministry is examining a proposal of the Department of Industrial Policy and Promotion (DIPP) to re-introduce restrictions on royalty payments by Indian arms of foreign companies.

“This matter is under examination,” economic affairs secretary Arvind Mayaram said, when asked whether the ministry favours restrictions on royalty payments. Worried over excessive outflow of foreign exchange as royalty for technology transfer and use of brand names, commerce minister Anand Sharma wrote to the finance minister on the issue.