Govt relaxes FDI norms; opens commodity exchanges, MROs
The amended policy allows 100% FDI in maintenance, repair and overhauling (MRO) facilities for aircraft as also aviation training units. How to choose an MF? | Day in Pics
By PTI |
NEW DELHI: Government on Wednesday liberalised the foreign direct investment policy, opening new areas like commodity exchanges, credit information and aircraft maintenance for overseas investors while enhancing the ceiling in public sector oil refineries.
While putting a number of areas on automatic route, particularly in the civil aviation sector, the amended policy allows 100 per cent FDI in maintenance, repair and overhauling (MRO) facilities for aircraft as also aviation training units, Information and Broadcasting Minister Priya Ranjan Dasmunsi said at a briefing on decisions taken by the Cabinet.
FDI up to 100 per cent has been permitted in the mining of titanium bearing minerals and foreign investment up to 49 per cent has been allowed in credit information companies. The permission of the Reserve Bank of India will be required for FDI in credit information firms.
The new policy has done away with compulsory divestment of 26 per cent equity in fuel and gas trading ventures, a move that could provide relief to companies like British Gas.
While putting a number of areas on automatic route, particularly in the civil aviation sector, the amended policy allows 100 per cent FDI in maintenance, repair and overhauling (MRO) facilities for aircraft as also aviation training units, Information and Broadcasting Minister Priya Ranjan Dasmunsi said at a briefing on decisions taken by the Cabinet.
FDI up to 100 per cent has been permitted in the mining of titanium bearing minerals and foreign investment up to 49 per cent has been allowed in credit information companies. The permission of the Reserve Bank of India will be required for FDI in credit information firms.
The new policy has done away with compulsory divestment of 26 per cent equity in fuel and gas trading ventures, a move that could provide relief to companies like British Gas.
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Hitherto, 100 per cent FDI was allowed through the automatic route on the condition that 26 per cent equity in such ventures be divested in favour of an Indian partner within five years.
The government raised FDI in public sector refineries to 49 per cent from the current 26 per cent. A few months back, the government had made a one-time exception to allow steel baron Lakshmi Mittal to pick a 49 per cent stake in HPCL's Bhatinda refinery.
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