New Delhi: A government panel on Tuesday proposed raising foreign investment limits in sectors like defence, multi-brand retail and telecommunications, to spur investment in the country and tide over the Current Account Deficit woes. "We have submitted the report to the Finance Minister. Action will be taken on it as and when the government decides. Policy is with DIPP so finally they will take a call. This is just our recommendation," Economic Affairs Secretary Arvind Mayaram told reporters in Delhi.
The committee, which was set up by Finance Minister P Chidambaram to review the sectoral caps, has suggested that the Foreign Direct Investment (FDI) ceiling in the defence sector be raised to 49 per cent under the government approval route from 26 per cent at present. In order to make multi-brand retail more attractive to foreign investors, the panel suggested that the FDI limit be raised to 74 per cent under the Foreign Investment Promotion Board (FIPB) route from 51 per cent. In case of single-brand retail, it suggested easing of the norms by advocating 49 per cent investment under the automatic route.
Currently, the government allows 100 per cent FDI under the approval route. Similarly in case of pharmaceuticals sector, the committee recommended 49 per cent under automatic route as against 100 per cent under the government approval route. As regards the telecom sector, the Mayaram panel said that 100 per cent FDI be allowed under the FIPB route as against 74 per
12:08 AM, Jun 19, 2013
New Delhi: The decision on Food Security ordinance was deferred on Thursday by the Union Cabinet as the government said it wanted to make one more effort to get the Opposition on board. But sources say the decision to defer the ordinance was taken because Prime Minister Manmohan Singh said that the Samajwadi Party must be brought on board over the issue. Both UPA Chairperson Sonia Gandhi and Manmohan Singh...
12:37 PM, Jun 13, 2013
New Delhi: Finance Minister P Chidambaram announced on Thursday that the government plans to announce more economic reforms soon. He asked people to not panic saying the economy is recovering. "Economy is stronger than what it was this time last year. Inflation too is low," the Union Minister said. Chidambaram also said that the government was planning to announce a review of the foreign direct investment (FDI) limits as also...
11:12 AM, Jun 13, 2013
New Delhi: In the first big disinvestement this fiscal, 9.33 per cent shares in the state-owned MMTC will be sold off on Thursday. The decision was taken after the Empowered Group of Ministers (EGoM) on disinvestment headed by Finance Minister P Chidambaram fixed the base price at Rs 600 crore on Wednesday. The floor price or the minimum offer price will be Rs 60 apiece. Soon after the commencement of...
09:46 AM, Jun 13, 2013
New Delhi: A panel of ministers on disinvestment headed by Finance Minister P Chidambaram will meet on Wednesday to decide the base price for the sale of stake of Metals and Minerals Trading Corporation of India. The sale of 9.33 per cent of MMTC's stake is expected to begin by June 13. The government expects to raise Rs 250-300 crore through the stake sale and the base or floor price...
10:48 AM, Jun 12, 2013
Mumbai: Raing agency Fitch has revised India's rating from negative to stable. Fitch has said that fiscal deficit targets will be met, which will strengthen the rupee. The rupee on Wednesday gained 60 paise to close at 57.79 against the dollar after Fitch revised India's credit outlook. Also, heavy dollar selling by some big corporates and US dollar weakening against the euro overseas also aided the rupee, forex dealers said....
09:49 AM, Jun 12, 2013
Hyderabad: A local court took cognisance of a complaint against a police official for not registering FIRs against union ministers Sushil Kumar Shinde and P Chidambaram over allegations that they "cheated" people in Telangana by making "misleading" statements about statehood. The second metropolitan magistrate's court took cognisance against the station house officer (SHO) of LB Nagar police station under Section 166 (a) of the Indian Penal Code (public servant disobeying...
01:01 AM, Jun 12, 2013
New Delhi: The meeting of the Group of Ministers (GoM) looking into the revival strategy for state- owned telecom firms BSNL and MTNL has been deferred by a day to June 12. "It has been deferred to June 12," an official source told reporters. The GoM, headed by Finance Minister P Chidambaram, was scheduled to meet on June 11. The high level inter-ministerial panel has not met since the time...
08:45 PM, Jun 10, 2013
Mumbai: Reserve Bank of India has extended the restriction on advance against gold on co-operative banks as well, a move aimed at curbing demand for gold. In a notification, the RBI said while granting advance against the security of specially minted gold coins sold by banks, state/central co-operative banks "should ensure that the weight of the coin(s) does not exceed 50 grams per customer'. Also the amount of loan to...
02:40 PM, Jun 07, 2013
Mumbai: Asking India Inc to revive its "animal spirits", Finance Minister P Chidambaram on Thursday announced setting up of a committee headed by Anil Swarup to re-start 215 large projects worth over Rs 7 lakh crore that have been stalled for various reasons. "After extensive discussions today, the Prime Minister has approved the appointment of a very senior officer to the Cabinet Secretariat, Anil Swarup, to track these 215 stalled...
11:16 PM, Jun 06, 2013
Mumbai: The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit. "I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai. He also urged banks...
05:10 PM, Jun 06, 2013
New Delhi: The government on Wednesday hit back at Gujarat Chief Minister Narendra Modi after he alleged that the UPA was doing nothing for national security with Union Telecom Minister Kapil Sibal accusing Modi of promoting terrorism. "Modi's administration has the ability to generate fake encounters. He must be knowing a lot about terror. The next time we wish to enact a law on terror, we must call Mr Modi,...
02:32 PM, Jun 05, 2013
New Delhi: Gujarat Chief Minister Narendra Modi once again attacked the Centre over internal security and slammed the National Counter Terrorism Centre (NCTC), saying the big brother attitude of the government is not good. "You are attacking the federal structure just by the idea of NCTC. The big brother attitude is not good," Modi said addressing the media after the internal security meet in the national capital. "The multi-agency centre...
01:51 PM, Jun 05, 2013
New Delhi: Union Finance Minister P Chidambaram on Tuesday said the West Bengal government will soon get comments of the Centre on the bill passed by the state assembly for protection of investors in chit fund schemes. "The Ministry of Finance has given its comments to the Ministry of Home Affairs (MHA). I think they (MHA) are awaiting comments from one or two other ministries, perhaps the Ministry of Company...
10:08 PM, Jun 04, 2013
New Delhi: India has asked the British government as to why it is not taking action against former IPL chief Lalit Modi who has sought refuge in London. Sources say Finance Minister P Chidambaram took up the issue of Lalit Modi during his meeting with the UK Chancellor of the Exchequer. Chidambaram reportedly asked why UK was not taking action despite the fact that Modi's passport has been impounded and...
12:33 PM, May 31, 2013
New Delhi: Moves appeared to be afoot to call a special Parliament session in July to pass two key bills, including the National Food Security Bill. A final decision on the issue will be taken after Prime Minister Manmohan Singh returns from his foreign tour on Friday, sources said. While the dates for the session are being talked about as July 1-5, the government sources said that no schedule has...
09:40 PM, May 30, 2013
Chennai: The country's economy will continue to grow at 5-6 per cent "regardless" of what government does or doesn't do, but with effective governance it can rise to over 8 per cent, Finance Minister P Chidambaram said on Monday. The country should focus on ensuring the conditions for economic growth remain "intact", he added. "We will grow at a rate of 5 or 6 per cent regardless of what government...
12:52 AM, May 28, 2013
New Delhi: With a view to seek foreign investments, Finance Minister P Chidambaram will be visiting Dubai on Sunday to sell India's growth story to sovereign wealth funds. The Minister is scheduled to meet his counterpart in Dubai and also hold bilateral consultations with the SWFs (Sovereign Wealth Funds) in his day-long visit to the Gulf nation, an official source said. The visit is part of Chidambaram's global tour to...
03:45 PM, May 25, 2013
Mumbai: Finance Minister P Chidambaram on Friday asked countrymen to contain their "uncontrolled passion" for gold and instead save in financial instruments. "Have faith in our financial sector. Unfortunately, we have difficulty shedding our old habits and put our money in gold," he said while speaking at an event to mark the platinum anniversary celebrations of state-run Dena Bank. "The uncontrolled passion for gold must be contained," Chidambaram said and...
02:03 AM, May 25, 2013
Mumbai: The Direct Taxes Code (DTC) Bill, which aims to overhaul the over 50-year-old I-T Act, is almost ready and will be taken up in the Monsoon session of Parliament, Finance Minister P Chidambaram said on Friday. "I am just writing the Direct Taxes Code. We will introduce it in the Monsoon session. We have another week's work on that," he said. The Finance Minister was in Mumbai to attend...
08:38 PM, May 24, 2013
