Legislation to woo FDI on the anvil

Prasad, who is also the chairman of the Foreign Investment Promotion Board (FIPB) said such a legislation was necessitated to translate the perceived industrial potential of the country into a reality. The legislation would also fulfill the persistent demands of institutional financial investors, he said here on Saturday while inaugurating a seminar on `Investment Opportunities in Footwear Components’. The seminar, a part of the 13th India international leather fair, was organised by the Council for Leather Exports (CLE).

As a firststep towards simplifying procedures, the RBIÿhad already dispensed with the first FERAÿclearance for foreign investors and dismantled its bureaucracy, he added.

In its bid to increase exports by providing a level-playing field for Indian products the Centre had introduced reforms in the Exim policy which included reduction in taxes.

Unfortunately, customs officials were yet to attune their approach despite tax reduction on certain items from 250 per cent to a mere 35 per cent.He also opined that time was not far when 100 per cent equity would be permissible to foreign investors in the private and public sectors except in areas like telecommunications and banking where national considerations necessitated a cap on their equity contribution.

On the leather industry which was a major foreign exchange earner for the country, Prasad said the Centre was seriously considering setting up of a revolving fund of Rs 900 crore for modernisation and upgradation of tanneries.