The government is likely to subject all investments in sectors closed to foreign investments to greater scrutiny through a new oversight body to ensure that foreign capital does not slip into these sectors undetected.
There have been allegations that under the new foreign direct investment policy overseas investments could be routed into the sectors closed to such investments. The prohibited sectors include multi-brand retail, gambling, betting, lottery, atomic energy and plantation.
The government today notified the ban on FDI in cigarette manufacturing.
“Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes” have been put under the list of sectors where FDI is prohibited.
Foreign direct investment (FDI) in the multi-brand retail may be allowed subject to a stiff condition that global retailers will have to invest heavily in the back-end infrastructure like warehousing and cold storage.
The Department of Industrial Policy and Promotion (DIPP) will soon come up with concept papers on relaxing norms for FDI in different sectors including multi-brand retail.
The Government on Thursday said foreign direct investment will not be allowed in housing projects for urban poor.
“There is no question of allowing FDI in housing for the poor,” Minister of State for Urban Development Saugata Roy told Rajya Sabha on Thursday.
Indian firms can borrow up to $40 billion this year from overseas markets, with the government moving in to ensure easy availability of funds for the rapidly recovering economy.
The high level co-ordination committee on external commercial borrowings decided in principle to raise the annual indicative ceiling to $40 billion for 2010-11 from $35 billion last year, a government official said.
The government today informed the Rajya Sabha that it was not possible to provide a time-frame for completion of investigations into allegations of money laundering against Anil Dhirubhai Ambani Group (ADAG).
Minister of State for Finance S S Palanimanickam said in a written answer that the Directorate of Enforcement had received complaints against some companies of ADAG, alleging money laundering in connivance with Mauritius-based fund Pluri Emerging Companies and UBS Bank, London.
 |
 |
 |
 |
 |
|||
  |
|||
   |
|||
Posted in 