Government plans to enhance FIPB clearance limit to Rs 5,000 crore

For the second time in one year, the government is planning to enhance the powers of the Foreign Investment Promotion Board (FIPB) to clear foreign direct investment proposals . The new limit for FIPB clearance will be projects worth Rs 5,000 crore, up from Rs 3,000 crore allowed now. The limit was just Rs 1,200 crore till May 2015.

In a statement today, the Ministry of Commerce and Industry has informed that the government also intends to make many other long pending corrections in its foreign direct investment (FDI) policies to encourage investments in the limited liability partnerships as well as NRI owned Companies in India.

It is also examining some proposals to enhance the sectoral caps in key sectors to solve the issue of fragmented ownership faced by the foreign investors and to motivate them to deploy their resources and technology with full force.

The ministry is also in the process of consolidating all FDI related instructions contained in various notifications and press notes for the convenience and clarity.

Ever since it came to power, NDA government has brought in FDI related reforms and liberalisation measures in at least 15 sectors of the economy.

Further relaxations is expected  in sectors such as agriculture and animal husbandry, plantation, defence, broadcasting, civil aviation, construction etc.