Parekh, Ganguly fund advisers

NEW DELHI: The government has appointed former HLL chairman, Ashok Ganguly, and HDFC chairman, Deepak Parekh, as members of the Investment Commission, which will be chaired by Ratan Tata.

The three-member commission will advise the government on FDI policies and procedures to ensure bigger inflow of foreign investment into the country, according to the terms of reference finalised by the finance ministry today.

The commission will seek out investment, especially in “sectors where there is a dire need for investment but adequate investment has not flowed so far.

The commission will interact closely with the boards of directors of potential investing companies in this regard.

The commission will be located in the finance ministry, and will enjoy operational autonomy. It will visit industrial groups and houses in India, and meet large companies abroad.

Its progress will be monitored every quarter.

Since domestic investors often feel there is a large gap between “announcements� and “proposals� and also between “proposals� and “project implementation,� the commission would also address the issue of bridging them, according to the terms of reference of the commission.

The recommendations to be made by the Investment Commission will be processed in the ministry. If there is a need for a policy decision, the proposal will be put up before the Cabinet Committee on Economic Affairs (CCEA) for approval.

The setting up of the commission with an initial term of three years was announced in the Budget this year.