
The Law Ministry has begun the process of drafting changes in the existing laws as well as framing new statutes required for safeguarding 8220;sensitive and strategic8221; sectors from Foreign Direct Investment FDI. The Union Law Secretary has already held two rounds of consultations on the proposed amendments and laws8212;on January 3 and March 24 this year.
Interestingly, the list of 8220;sensitive and strategic8221; sectors listed by the Ministry of Home Affairs for the Law Ministry on March 12 for the legal processes to be set into motion include every possible sector8212;which have been divided in 16 categories.
The MHA8217;s secret communication, available with The Indian Express, lists the media print and news content as a sector facing 8220;perceived8221; security threat from FDI for two reasons. One, according to the MHA, the news media is 8220;critical for public order8221;, and two, the print and news media are prone to 8220;subversion8221; from FDI.
The MHA has noted that the Intelligence Bureau had also recommended inclusion of the 8220;education, health, social security and postal services8221; in the catalogue of 8220;sensitive/strategic8221; sectors, but that these had not been included in the final list.
The movement on the issue in the ministries of Home Affairs and Legal Affairs follows a spate of confidential reports on the subject of security threats via FDI prepared by the National Security Council over the past two years. The MHA8217;s note for the Law Ministry gives examples of existing FDI in each of the 16 sectors prepared previously by the NSC.
Several perceived 8220;threats8221; from FDI have also been listed by the MHA for each sector, but to list some:
8226; Airports and Civil Aviation: Foreign operators can facilitate easier use of airports for smuggling of weapons, drugs and infiltrators; they can slow down operations and facilitate landing facilities of airplanes of questionable origin with suspect cargo.
8226; Telecom: Is highly vulnerable to technical disruptions/ sabotage; routing of international calls through third country may result in transfer of entire conversation to any port of the world.
8226; Ports: Sophisticated listening facilities such as in Gwadar and CoCo Islands could surreptitiously find their way into India8217;s port infrastructure; foreign operators may gain management control of crucial maritime sea-lanes and obtain permanent base to observe naval movements.
8226; Real Estate: FDI here has been listed as potentially sensitive for dangers of money laundering; inflow of money earned from terrorist and drug smuggling activities.
8226; Hardware Processing, Defence Production, Space and Satellite Research, Roads and Highways in border areas: Such sectors have been described by the MHA as being vulnerable to espionage, subversion and sabotage.
At NSC8217;s earlier meetings, the Law Ministry had opined that in order to exclude sensitive sectors from FDI, critical amendments would be required in existing laws as well as fresh legislation. The UPA Government has obviously put the process on a fast-track evident from the ministry8217;s correspondence on the subject with the MHA.