FIPB gets more power; can clear proposals up to Rs 5k crore

NEW DELHI: With an aim to expedite FDI clearance process, the government today enhanced FIPB's monetary limit to approve foreign investment proposals of up to Rs 5,000 crore.

Earlier, the FIPB, which is headed by DEA Secretary, was allowed to approve foreign investment proposals of worth up to Rs 3,000 crore.

"In order to achieve faster approvals on most of the proposals, it has been decided that the threshold limit for FIPB approval may be increased to Rs 5,000 crore," the Commerce and Industry Ministry said in a statement.

It said that the move would help in further improving ease of doing business in the country which would lead to larger FDI inflows.

Beyond the ceiling of Rs 5,000 crore, the proposal will go to Cabinet Committee on Economic Affairs ( CCEA) headed by the Prime Minister.