The Secretary of Department of Industrial Policy & Promotion (DIPP) has said that the Foreign Investment Promotion Board’s (FIPB) portal has now been transferred to the DIPP and will be called the Foreign Investment Facilitation Portal (FIFP). The Secretary also stated that the concerned ministry to which the proposal will be sent will have to scrutinise the Foreign Direct Investment (FDI) application in a week’s time. The secretary also said that the RBI will be given another four weeks to scrutinise the FDI application. Currently, 70 FDI cases are pending with the the FIPB, according to a CNBC report.
The industry department has fixed July 1 as the timeline to implement the standard operating procedure (SOP) for clearing foreign investment proposals, PTI reported. The draft SOP was discussed today with other departments, including revenue and economic affairs. “We have received views of different ministries. We have issued the draft. Our target is to implement it from July 1,” Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek said. A note sent by the DIPP, the nodal agency for FDI policy, to all ministries stated that the new regime will be simpler in execution and will expedite the disposal of the proposals. After a proposal is filed, the DIPP would identify the ministry to which the proposal be sent and do so electronically within two days, as per FE Bureau.
The note further adds that a proposal should be granted in a 10 weeks where a security clearance is required and eight weeks for proposals which do not require a security clearance. The date for calculation for the proposals will begin from the date on which it was filed, according to the FE Bureau.
FDIs in sectors such as broadcasting, telecom and satellites as well as investments from Pakistan and Bangladesh require clearance from the Home Ministry. Investments to Jammu & Kashmir and the NorthEast also require clearance from MHA, according to FE Bureau.
In the 2016-17 fiscal year, India received a record USD 61 Billion FDI, which included reinvestment earnings, up from USD 55.6 Billion in the previous year