Govt ups FIPB FDI clearance power 250% to `3,000 cr
With an aim to expedite FDI clearance process, the government on Wednesday enhanced FIPB’s powers to recommend foreign investment proposals of up to Rs 3,000 crore, more than double of Rs 1,200-crore limit at present.
The Foreign Investment Promotion Board (FIPB) recommended proposals are cleared by the Finance Minister and any investment beyond the new ceiling of Rs 3,000 crore will go to Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister. Earlier, the FIPB had powers to recommend for investment approval of up to Rs 1,200 crore. “The Minister of Finance who is in-charge of FIPB would consider the recommendations of FIPB on proposals with total foreign equity inflows up to Rs 3,000 crore.
“Recommendations of Foreign Investment Promotion Board on proposals with total foreign equity inflow of more than Rs 3,000 crore would be placed for consideration of CCEA,” an official statement said. The release was issued after a CCEA meeting headed by PM Narendra Modi.