Govt eases FDI norms

Providing an opportunity to foreign companies to increase their equity in their Indian joint ventures...

Written by ENS Economic Bureau | New Delhi | Published: February 12, 2009 12:26:06 am

Providing an opportunity to foreign companies to increase their equity in their Indian joint ventures,the government on Wednesday changed the FDI policy and excluded indirect investment through domestic companies from overall sectoral ceilings.

The decision to change the FDI policy guidelines was taken by the Cabinet Committee on Economic Affairs (CCEA). “The foreign investment through (an) investing Indian company would not be considered for (calculating) the indirect foreign investment in (the) case of Indian companies ‘owned and controlled’ by resident Indian citizens and Indian companies owned and controlled ultimately by resident Indian citizens,” a new guideline says.

Asked what the objective of the changes in the FDI policy was,Home Minister P Chidambaram said,“The objective is to make (the policy) simple and transparent,according to the Department of Industrial Policy and Promotion (DIPP).”

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