Review of Foreign Direct Investment (FDI) caps and routes in various sectors.

1.     Petroleum & Natural Gas

(Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.) (para 6.2.4.2)

FDI ceiling

Route

(a) Existing

49%

Government

(b) Proposed

49%

Automatic

2.     Commodity exchanges (para 6.2. 17.4)

(a) Existing

49%(26%FDI+23%FII)

Government

(b) Proposed

49%(26%FDI+23%FII)

Automatic #

3.   Power exchanges (para 6.2.19)

(a) Existing

49%(26%FDI+23%FII)

Government

(b) Proposed

49%(26%FDI+23%FII)

Automatic

4.     Stock exchanges, depositories and clearing corporations (para 6.2.17.6.1)

(a) Existing

49%(26%FDI+23%FII)

Government

(b) Proposed

49%(26%FDI+23%FII)

Automatic

5.   Asset Reconstruction Company (para 6.2.17.1)

(a) Existing

74%(FDI + Fll)

Government             :

(b) Proposed

100%(FDI+FII)

Up to 49% Automatic 49% to 100% Government

6.   Credit Information Companies (CICs) (para 6.2.17.5)

(a) Existing

49% (FDI+FII)

Government

(b) Proposed

74%(FDI+FII)

Automatic

7.   Tea sector including tea plantations (para 6.2.2.1)

(a) Existing

100%     (divestment of 26% to Indian partner within 5 years)

Government

(b) Proposed

100%

Government

8.   Single-brand product retail trading (para 6.2.1 6.4)

(a) Existing

100%

Government

(b) Proposed

100%

Up to 49% Automatic 49% to 100% Government ##

Existing pargraphs

Proposed paragraphs

6.2.16.4 (2) (d)

Only one non-resident entity, whether owner of the brand or otherwise, shall be permitted to undertake single brand product retail trading in the country, for the specific brand, through a legally tenable agreement, with the brand owner for undertaking single brand product retail trading in respect of the specific brand for which approval is being sought. The onus for ensuring compliance with this condition shall rest with the Indian entity carrying out single-brand product retail trading in India. The investing entity shall provide evidence to this effect at the time of seeking approval, including a copy of the licensing/ franchise/sub-licence agreement, specifically indicating compliance with the above condition.

6.2.16.4 (2) (d)

A non-resident entity or entities, whether owner of the brand or otherwise shall be permitted to undertake `Single Brand` product retail trading in the country for the specific brand, directly or through a legally tenable agreement with the brand owner for undertaking single
brand product retail trading. The
onus for ensuring compliance with
this condition will rest with the Indian
entity carrying out single brand
product retail trading in India. The
investing entity shall provide evidence
to this effect at the time of seeking
approval, including a copy of the
licensing/ franchise/sub-license
agreement, specifically indicating
compliance with the above condition.
The requisite evidence should be filed
with the RBI for the automatic route
and SIA/FIPB for cases involving
approval.

6.2.16.4 (3) Application seeking permission of the Government for FDI in retail trade of "Single Brand" products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. The applications would specifically indicate the product/ product categories which are proposed to be sold under a "Single Brand". Any additional to the product/ product categories to be sold under Single Brand" would require a fresh approval of the Government.

6.2.16.4 (3) Application seeking permission of the Government for FDI exceeding 49% in a company which proposes to undertake single brand retail trading in India would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy and Promotion. The applications would specifically indicate the product/ product categories which are proposed to be sold under a "Single Brand". Any addition to the product/ product categories to be sold under "Single Brand" would require a fresh approval of the Government. In case of FDI up to 49% the product/ product categories proposed to be sold except food products would be provided to the RBI.

9.   Test Marketing (para 6.2.16.3)

(a) Existing

100%.

Government

(b) Proposed

Para to be deleted.

10. Telecom Services ( including Telecom Infrastructure Providers Category-l)

All telecom services including Telecom Infrastructure Providers Category-I, viz. Basic, Cellular, United Access Services, Unified license (Access services), Unified License, National/ International Long Distance, Commercial V-Sat, Public Mobile Radio Trunked Services   (PMRTS),   Global Mobile Personal   Communications Services       (GMPCS),   All   types     of   ISP   licences,   Voice Mail/Audiotex/UMS, Resale of IPLC, Mobile Number Portability services, Infrastructure Provider Category-l (providing dark fibre, right of way, duct space, tower) except Other Service Providers.

 (para 6.2.15.1, 6.2.15.2 and 6.2.15.3)

(a) Existing

74%.

Up to 49% Automatic 49% to 74% Government

(b) Proposed

100%

Up to 49% Automatic 49% to 100% Government@

11. Courier Services (para 6.2.10)

(a) Existing

100%

Government

(b) Proposed

100%

Automatic

12. Defence (para 6.2.6)

(a) Existing

26%

Government

(b) Proposed

26%-No change $

Up to 26%, no change i.e., through FIPB and CCEA if FDI exceeds Rs. 1200 crore.

 Above 26% to CCS on case to case basis, which ensure access to modern and `state-of-art` technology in the country.