With FIPB gone, ministries will now clear foreign investment proposals

The Department of Industrial Policy and Promotion (DIPP) has circulated the draft of standard operating procedures that the ministries need to follow while reviewing foreign investment proposals.

Since Foreign Investment Promotion Board (FIPB) now stands abolished, ministries have been asked to clear proposals, a process that DIPP will be coordinating.

The draft rules say that ministries will have eight weeks to decide upon the received applications, which can be increased to 10 weeks if a proposal involves security clearance by the ministry of home affairs.

“We have proposed a draft and want to put the new procedure in place by July 1,” said Ramesh Abhishek, Secretary, DIPP.

DIPP would need to transfer the foreign investment proposal to the concerned ministry, the Reserve Bank of India and any other authority if concerned within two days of receiving it. It would then give a week’s time for scrutiny and provide any additional information they require.

Regarding the FIPB portal, it would soon be renamed to Foreign Investment Facilitation Portal.

As per DIPP, Union cabinet has approved a new public procurement policy, as per which ministries and departments can restrict or exclude bidders from a particular country if it does not allow Indian suppliers to participate in its foreign procurement.

In case the policy is successful at the central level, states would be advised to follow it too.

(Image source Jagran)