Govt is mulling uniform FDI cap within sectors

New Delhi: As part of the process of streamlining foreign investments in the country, the government is considering the introduction of uniform foreign direct investment (FDI) ceilings in different business segments within a sector.
A policy of identical FDI limits in different segments within a sector would reduce complexities and result in ceilings going up in some business areas in sectors like media and aviation.
“We are looking at uniform caps for FDI within a sector,” commerce and industry minister Kamal Nath said today.
The government is likely to allow foreign investors to pick stake in commodity exchanges and change the norms and caps for the aviation, petroleum and retail sectors following the review.
Liberalisation of FDI norms in Asset Reconstruction Companies, where the limit currently stands at 49 per cent through Foreign Investment Promotion Board (FIPB) approval, too may be in the offing while a review of the cap on voting rights in the banking sector is on the cards. In aviation, the government is expected to define what constitutes air traffic services and whether there ought to be different rules and limits for it.
17/03/07 Indian Express

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Categories: Foreign Mar 2007, General Aviation Mar 2007