The government relaxed the foreign direct investment (FDI) norms for the FM radio segment by raising the limit of foreign capital inflows to 26 per cent from 20 per cent. It has also eased the FDI norms regarding construction of old-age homes and educational institutions.This would mean that schools, universities and colleges would not have to meet minimum area and built-up area requirement, minimum capital requirement, minimum capitalisation requirement and lock-in period.
The government allowed overseas investment in bee-keeping and share-pledging for raising external debt.The revised policy also allowed pledging of shares of an Indian company, which has raised ECBs, for securing the ECB raised. It also provides for opening and maintaining, without RBI approval, non-interest bearing rupee Escrow accounts by non-residents towards payment of share purchase consideration in a move to facilitate FDI.
In the biotechnology, pharmaceutical and life sciences sector, the FDI circular that is reviewed every six months, said that research and development in these sectors would be covered under the ‘industrial parks’ scheme, where 100 per cent FDI is permitted under automatic route.
The new norms would be effective from October 1.These amendments were done as part of the fourth revision of the Consolidated FDI Policy. The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and industry had issued the first Consolidated FDI Policy in April last year with the objective of updating the document every six months.
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Minister for Information and Broadcasting is Ms Ambika Soni
Today in History
| 1-October-1904 | Ayillyath Kuttiari Gopalan Nambiar ""A.K.Gopalan"" was born in Cannanore district, north Kerala. He was a freedom fighter and leader of communist movement in Keral |
