NEW DELHI, March 8: The government is reviewing guidelines on divestment of equity in wholly-owned subsidiaries and joint ventures of foreign companies to Indian public.The issue will be taken up by the core group of secretaries at a meeting on Monday. The core group comprises industry secretary T R Prasad, finance secretary Montek Singh Ahluwalia and commerce secretary P P Prabhu among others. The core group will also discuss the concept note on foreign direct investment and its impact on exports. The government officials are tight lipped about the issue of relation between FDI and exports, it is learnt that fresh policy norms may be formulated to boost sagging exports.Meanwhile, government sources said the next meeting of the Foreign Investment Promotion Board has been fixed for March 11. Sources said that the meeting was being held despite the possibility of the new government taking charge around the same time as the government does not want to give wrong signals to the foreign investors that thepolitical uncertainty was affecting the functioning of a body like FIPB. Another important case which will be taken up by the core group is Ranbaxy Laboratories Ltd's chairman and managing director Parvinder Singh's proposal to divest a part of his equity stake in the company to a clutch of foreign parties. The matter has been referred to the core group by the FIPB as it involved a policy decision.Removal of impediments in attracting foreign investment in the electronics sector are also on the agenda of the meeting.The core group, which provides policy directions to the FIPB, which also discuss a proposal by the ministry of external affairs on foreign investors' perceptions and other similar references by the ministry. The foreign investment applications which will be cleared by the FIPB at its next meeting may be given the final approval by the next industry minister.
