Millennium Post

Govt prescribes new format for filing FIPB applications

Seeking to expedite clearances for foreign investment proposals, the Commerce and Industry Ministry has prescribed a format for submitting applications before the Foreign Investment Promotion Board (FIPB). Under the format, a foreign investor will be required to provide separate details about the joint venture partner.
Foreign single and multi-brand retailers will have to present documents to show that the brand which they propose to sell in India is an international brand. Besides, the global retailer would also have to give diagrammatic representation of flow of funds into the joint venture indicating the business structure.
Other information which the foreign retail player will have to provide includes the status compliance of conditions under the FDI policy; list of countries where the brand is being sold internationally; existing activities and the existing capital structure of the Indian joint venture partner company.
‘In order to help us serve you better and expeditiously, all applicants filing fresh proposals for consideration by FIPB are requested to ensure that (all the relevant) information/documents are available in their application form,’ the Department Of Industrial Policy & Promotions (DIPP) notice said.
Although the UPA government has permitted 51 per cent FDI in the multi-brand retail, the BJP-led NDA government, which is in office, has been opposing the policy. Till now, only UK-based Tesco's proposal has been approved by the government.
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