FIPB gets more power, can now recommend FDI proposals up to Rs 3,000 crore

NEW DELHI: With an aim to expedite FDI clearance process, the government today enhanced FIPB's powers to recommend foreign investment proposals of up to Rs 3,000 crore, more than double of Rs 1,200-crore limit at present.

The Foreign Investment Promotion Board (FIPB) recommended proposals are cleared by the Finance Minister and any investment beyond the new ceiling of Rs 3,000 crore will go to Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister.

Earlier, the FIPB had powers to recommend for investment approval of up to Rs 1,200 crore.

"The Minister of Finance who is in-charge of FIPB would consider the recommendations of FIPB on proposals with total foreign equity inflows up to Rs 3,000 crore.

"Recommendations of FIPB on proposals with total foreign equity inflow of more than Rs 3,000 crore would be placed for consideration of CCEA," an official statement said.

The release, issued after CCEA meeting headed by Prime Minister Narendra Modi, further said the decision is expected to "expedite the approval process and result in increased foreign investment inflows".

FIPB is an inter-ministerial body headed by Economic Affairs Secretary.

The CCEA would also consider the proposals which may be referred to it by the FIPB / the Minister of Finance.

The FIPB Secretariat in the Department of Economic Affairs (DEA) will process the recommendations of FIPB to obtain the approval of Minister of Finance and the CCEA, the release added.