In a bid to streamline the Foreign Direct Investment (FDI)
structure, the government on Thursday introduced a composite foreign investment
cap by clubbing all forms of overseas investments to define sectoral limits. The
main objective of this project is to expedite the movement of infrastructure in
the states of Uttar Pradesh and Haryana. Its development will also help in
uplifting the socio-economic condition of the concerned regions of the state.
Finance Minister Arun Jaitley said that from now onwards,
all foreign institutional investors (FIIs),
non-resident Indians (NRIs) and other foreign investments will be
clubbed. It will be constituted as a composite cap. The proposal is aimed at
simplification of FDI policy with a view to attracting foreign investments and
also improving ease of doing business in India.
Decision in this regard was taken during Union Cabinet
meeting chaired by Prime Minister Narendra Modi in New Delhi. This move will
help government to club all forms of overseas investments such as FDI,
Non-resident Indians (NRIs), foreign institutional investors (FIIs) and other
foreign investments to define sectoral limits as a composite cap. Present
policy has different caps for separate investment categories like FDI, FII and
NRIs. The proposed sectors for composite foreign investment cap are
agriculture, mining, tea, broadcasting, airports, media, retail (single brand
and multi-brand), asset reconstruction companies, e-commerce, banking,
insurance and commodity exchanges. Thus it will simplify the FDI policy with a
view to attract foreign investments and also improving ease of doing business
in India. Apart from this decision, Cabinet Committee on Economic Affairs
(CCEA) also gave its approval for development of 6 lanning of Eastern
peripheral expressway in Uttar Pradesh and Haryana. The cost is estimated for
this project is to be 7,558 crore rupees including 1,759 crore rupees for land
acquisition, rehabilitation and resettlement activities.
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