Govt wants toned-down Press Note 18

NEW DELHI: The government on Monday said it was in favour of "toning down" the controversial Press Note 18 which puts conditions on foreign companies having joint ventures to raise their investments in the country.

"We are in favour of toning it down. It will now go to the Cabinet for its approval," finance secretary DC Gupta said, adding global investors had raised the issue during the recent ''India Investment'' meets in New York and London with Finance Minister P Chidambaram.

The government might also do away with the clause which required foreign investors to seek permission of their erstwhile joint venture partner in the country for carrying out fresh investment.

During the investors meet, Gupta said the Finance Minister had also assured that the government would look into the aspects of fungibility (inter-changeability) of investment between foreign direct investment and foreign institutional investments (FIIs).

"The Foreign Investment Promotion Board will further streamline procedures to attract more FDI," he said, adding that FIPB will continue to be a one-stop window for attracting FDI inflows.

Referring to his visit of US and UK, Gupta said foreign investors are upbeat about India and want simple investment procedures.

"People are upbeat about investment. Large number of FIIs were also upbeat," he said.