ID :
46749
Sat, 02/21/2009 - 15:08
Auther :
Shortlink :
https://oananews.org//node/46749
The shortlink copeid
Nath rules out any change in FDI policy
New Delhi, Feb 20 (PTI) Unfazed by criticism over
allowing "backdoor" entry to foreign investment in sectors
like retail, the Indian government Friday ruled out review of
the new FDI policy that keeps indirect FDI out of sectoral
caps.
"There is no question of review. If something is not
understood, there will be clarification... Anybody who has
doubt can get clarification," Commerce and Industry Minister
Kamal Nath told reporters on the sidelines of an India-New
Zealand bilateral meet here.
On the eve of the current session of Parliament, the
Cabinet Committee on Economic Affairs approved some far-
reaching changes in the FDI guidelines.
As per the new norms, foreign investment in a company,
"owned and controlled" by an Indian, would not be counted as
FDI. This means,a minority FDI in a domestic firm would not be
taken into account when it makes investment into a subsidiary
firm that in turn has a joint venture with a foreign company.
By implication, FDI component in the parent domestic firm
would not be subject to the sectoral caps, thus giving leeway
to overseas firms in sectors like telecom. The policy does not
prohibit FDI into retail either. At present, FDI in multibrand
retail is not permitted.
The Left parties have blamed the government for allowing
"backdoor entry" to FDI into sectors kept outside the overseas
investment.
Nath said with large amount of FDIs in the range of USD
25-30 billion coming into the country, the policy needs to
be fine-tuned.
"As we moved on...from USD 300 million to USD 25-30
billion, new issues keep coming up...they will keep coming in
future as well," he said.
The Left parties have criticised the government over
making far-reaching changes in the policy days before
Parliament was to meet for the current session.
Swadeshi Jagran Manch also joined the issue against the
government.
While India permits 100 per cent FDI in several sectors,
ceilings have been kept in many others like telecom, aviation,
insurance, defence production and media.
With the changes in the policy, the ceilings could become
fructuous, critics say. PTI NKD
SAK
NNNN
allowing "backdoor" entry to foreign investment in sectors
like retail, the Indian government Friday ruled out review of
the new FDI policy that keeps indirect FDI out of sectoral
caps.
"There is no question of review. If something is not
understood, there will be clarification... Anybody who has
doubt can get clarification," Commerce and Industry Minister
Kamal Nath told reporters on the sidelines of an India-New
Zealand bilateral meet here.
On the eve of the current session of Parliament, the
Cabinet Committee on Economic Affairs approved some far-
reaching changes in the FDI guidelines.
As per the new norms, foreign investment in a company,
"owned and controlled" by an Indian, would not be counted as
FDI. This means,a minority FDI in a domestic firm would not be
taken into account when it makes investment into a subsidiary
firm that in turn has a joint venture with a foreign company.
By implication, FDI component in the parent domestic firm
would not be subject to the sectoral caps, thus giving leeway
to overseas firms in sectors like telecom. The policy does not
prohibit FDI into retail either. At present, FDI in multibrand
retail is not permitted.
The Left parties have blamed the government for allowing
"backdoor entry" to FDI into sectors kept outside the overseas
investment.
Nath said with large amount of FDIs in the range of USD
25-30 billion coming into the country, the policy needs to
be fine-tuned.
"As we moved on...from USD 300 million to USD 25-30
billion, new issues keep coming up...they will keep coming in
future as well," he said.
The Left parties have criticised the government over
making far-reaching changes in the policy days before
Parliament was to meet for the current session.
Swadeshi Jagran Manch also joined the issue against the
government.
While India permits 100 per cent FDI in several sectors,
ceilings have been kept in many others like telecom, aviation,
insurance, defence production and media.
With the changes in the policy, the ceilings could become
fructuous, critics say. PTI NKD
SAK
NNNN
