Friday, August 02, 2013

Review of Foreign Direct Investment (FDI) caps and routes in various sectors.

 The Government has decided to amend the provisions relating to the FDI caps and routes in various sectors as under:

1.   Petroleum & Natural Gas
(Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.) (para 6.2.4.2)



FDI ceiling

Route


(a) Existing

49%

Government


(b) Proposed

49%

Automatic


2.   Commodity exchanges (para 6.2. 17.4)

(a) Existing

49%(26%FDI+23%FII)

Government


(b) Proposed

49%(26%FDI+23%FII)

Automatic #


3.   Power exchanges (para 6.2.19)


(a) Existing

49%(26%FDI+23%FII)

Government


(b) Proposed

49%(26%FDI+23%FII)

Automatic


4.   Stock exchanges, depositories and clearing corporations (para 6.2.17.6.1)

(a) Existing

49%(26%FDI+23%FII)

Government


 (b) Proposed

49%(26%FDI+23%FII)

Automatic

5.   Asset Reconstruction Company (para 6.2.17.1)
(a) Existing

74%(FDI + Fll)

Government             :

(b) Proposed

100%(FDI+FII)

Up to 49% Automatic 49% to 100% Government

6.   Credit Information Companies (CICs(para 6.2.17.5)
(a) Existing

49% (FDI+FII)

Government

(b) Proposed

74%(FDI+FII)

Automatic

7.   Tea sector including tea plantations (para 6.2.2.1)
(a) Existing

100%   (divestment  of 26% to Indian partner within 5 years)

Government

(b) Proposed

100%

Government

8.   Single-brand product retail trading (para 6.2.1 6.4)

(a) Existing

100%

Government

(b) Proposed

100%

Up to 49% Automatic 49% to 100% Government ##


# Subject to guidelines issued by Department of Consumer Affairs/FMC.
## Existing paragraphs 6.2.16.4 (2) (d) and 6.2.16.4 (3) of 'Circular 1 of 2013-Consolidated FDI Policy' will be replaced with following paragraphs:

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