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Government Plans To Clear FDI Proposals In 8-10 Weeks

The government is looking to clear FDI proposals in the 11 sectors, such as defence, insurance and telecom, where approval is still required within eight to 10 weeks of receipt of application to boost the investment climate after the abolition of the Foreign Investment Promotion Board (FIPB)

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The government is looking to clear FDI proposals in the 11 sectors, such as defence, insurance and telecom, where approval is still required within eight to 10 weeks of receipt of application to boost the investment climate after the abolition of the Foreign Investment Promotion Board (FIPB).

The standard operating procedure for clearances that was discussed with ministries on Tuesday has proposed a maximum 10 weeks for cases where security clearances are required, amid indications that the limit may be increased given the sensitivities involved.

“We are currently discussing the plan and no decision has been taken. We hope to move to the new mechanism from July 1,“ department of industrial policy and promotion (DIPP) secretary Ramesh Abhishek said.

Apart from the timelines, DIPP is also looking at the possibility of sharing the application with ministries other than the administrative agency so that they can also comment on the proposal.

In addition, the rules will clearly stipulate that no ministry can either reject a proposal or add conditions other than those prescribed in the FDI policy without consulting DIPP . As part of the latest round of reforms, the government abolished FIPB, set up in 1991, as over 90% of the cases did not need approval from policy makers.

(PTI)


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