P Chidambaram for reviewing FDI ceiling in different sectors

The FDI caps were laid down historically at different points of time,he said,adding 8220;we are now into 22nd year of liberalisation8230;These caps must be looked into again.8221;

Presently two committees 8212; one under Department of Economic Affairs Secretary Arvind Mayaram and the other formed by RBI 8212; are looking into different aspects of the foreign investment.

He said RBI was likely to come out with its paper on FDI in two weeks time.

8220;We will take it forward as soon as we have RBI paper and the committee8217;s report. I don8217;t think either the PM or I have any pre-conceived opinion on a particular cap8221;,he said.

Earlier this week,Prime Minister Manmohan Singh had said 8220;the liberalisation of FDI in multi-brand retail,civil aviation and other areas,are important signals. We are reviewing the FDI policy comprehensively to see what more can be done in the coming months.8221;

At the same time,Commerce and Industry Minister Anand Sharma had said that further liberalisation of foreign investment norms could include raising FDI cap in sectors like insurance,banking and defence in a 8220;calibrated and incremental8221; manner.

The eight-member Committee on foreign investment held its first meeting on April 4.

The panel has been set up to examine and work out the details of the application of the principle followed internationally for defining FDI and FII.

Currently,if an investor has a stake of 10 per cent or less in a company,it is treated as FII. If the stake exceeds 10 per cent,the investment is treated as FDI.