Government may ban FDI in cigarettes
The commerce ministry is considering a proposal to ban foreign direct investment in the manufacture of cigarettes for sale in the country, the Lok Sabha was informed on Tuesday.
By PTI |
NEW DELHI: The commerce ministry is considering a proposal to ban foreign direct investment in the manufacture of cigarettes for sale in the country, the Lok Sabha was informed on Tuesday.
"A proposal to prohibit FDI in the manufacture of cigarettes, where it is manufactured for domestic consumption, has, accordingly, been initiated by the Department of Industrial Policy and Promotion and is under consideration of the government," minister of state for commerce and industry Ashwini Kumar said.
Kumar said as per the extant policy, FDI up to 100% is allowed, with prior government approval, in the manufacture of tobacco-based cigars and cigarettes, subject to industrial licence and conditions.
"A proposal to prohibit FDI in the manufacture of cigarettes, where it is manufactured for domestic consumption, has, accordingly, been initiated by the Department of Industrial Policy and Promotion and is under consideration of the government," minister of state for commerce and industry Ashwini Kumar said.
Kumar said as per the extant policy, FDI up to 100% is allowed, with prior government approval, in the manufacture of tobacco-based cigars and cigarettes, subject to industrial licence and conditions.
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