Click to play videoNew Delhi: The Government is planning another booster dose to make the country more attractive for Foreign Direct Investment (FDI).
TV18 learns the FDI policy is set for an overhaul next month. Sources say this move could encourage investments into commodity exchanges, retailing, aviation, petroleum.
For commodity exchanges, the Government is likely to notify FDI and FII guidelines. Norms for foreign investment into stock exchanges have already been notified and resulted in the NYSE picking up a five per cent stake in the NSE.
For petroleum, sectoral restrictions such a 26 per cent mandatory divestment clause could be eased out. Moreover, the Government is also mulling raising the FDI cap for air traffic services.
It is also looking at setting up a separate head for air traffic services and define what constitutes these services and whether they need different FDI rules and limits.
Thats not all. After opening up single brand retail, there could be further opening up of the retail sector.
FDI in multi-brand retail could be allowed in certain sectors such as sports and electronics. Sources say that the note for the cabinet would take into account the experience of the FDI regime over the last one year.
It could also review FDI cap for asset reconstruction companies that stands at 49 per cent through the FIPB route.
Clarity could also be provided on some of the sectoral restrictions for banks. Government sources also say that a review of the FDI policy would become an annual affair.
Last year, the Government's review resulted in liberalisation of the FDI policy in the case of mining, manufacturing, greenfield airports and cash-&-carry wholesale trading.
Moreover, FDI regulations were liberalised for areas such as coal, petroleum and natural gas and mining of precious stones.
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