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TMI BlogReview of the policy on Foreign Direct Investment (FDI)-Caps and routes in various sectorsX X X X Extracts X X X X X X X X Extracts X X X X ..... 0% Government b) Revised Position FDI Cap Entry Route No Change No change Note: Besides the above, FDI is not allowed in any other plantation sector/activity. The following clause (i) under 'Other conditions' listed in paragraph 6.2.2.2 is deleted: "(i) Compulsory divestment of 26% equity of the company in favour of an Indian partner/Indian public within a period of 5 years." 1.2 Petroleum and Natural Gas (paragraph 6.2.4.2): Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs a) Present Position FDI Cap Entry Route 49% Government b) Revised Position FDI Cap Entry Route No Change Automatic 1.3 Defence (paragraph 6.2.6): Def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss to modern and 'state-of-art' technology in the country. (xix) Proposals for FDI beyond 26% with proposed inflow in excess of Rs. 1200 crores, which are to be approved by CCS will not require further approval of the Cabinet Committee of Economic Affairs (CCEA). 1.4 Courier Services (paragraph 6.2.10): a) Present Position FDI Cap Entry Route 100% Government b) Revised Position FDI Cap Entry Route No change Automatic 1.5 Telecom Services (paragraph 6.2.15) a) Present Position 6.2.15 Telecom Services Investment caps and other conditions for specified services are given below. However, licensing and security requirements notified by the Department of Telecommunications will need to be complied with for all services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bal Mobile Personal Communications Services (GMPCS), All types of ISP licences, Voice Mail/Audiotex/UMS, Resale of IPLC, Mobile Number Portability services, Infrastructure Provider Category-I (providing dark fibre, right of way, duct space, tower) except Other Service Providers. 100% Automatic up to 49% Above 49% Government 6.2.15.1 Other Conditions: FDI upto 100% with 49% under automatic route and beyond 49% through FIPB route subject to observance of licensing and security conditions by licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time. 1.6 Test Marketing (paragraph 6.2.16.3) of such items for which marketing facility will be for a period of two years, and investment in settin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 addition to the product/ product categories to be sold under 'Single Brand' would require a fresh approval of the Government." Revised paragraphs- 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 carry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry Route Upto 100% of paid-up capital of ARC (FDI+FII) Up to 49% Automatic Above 49% Government Clause (i) under 'Other conditions' listed in paragraph 6.2.17.1.2 is revised as under: a) Present Position "(i) Persons resident outside India can invest in the capital of Asset Reconstruction Companies (ARCs) registered with Reserve Bank only under the Government Route." b) Revised Position "(i) Persons resident outside India can invest in the capital of Asset Reconstruction Companies (ARCs) registered with Reserve Bank, upto 49% on the automatic route, and beyond 49% on the Government Route." 1.9 Commodity Exchanges(paragraph 6.2.17.4.2): a) Present Position FDI Cap Entry Route 49% (FDI & FII) [Investment by Registered FI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (FDI & FII) [FDI limit of 26 per cent and an FII limit of 23 per cent of the paid-up capital ] Government (for FDI) b) Revised Position FDI Cap Entry Route No Change Automatic 1.12 Power Exchanges (paragraph 6.2.19.1): Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 c) Present Position FDI Cap Entry Route 49% (26% FDI +23% FII) Government (for FDI) d) Revised Position FDI Cap Entry Route No Change Automatic The following clause (ii) under 'Other conditions' listed in paragraph 6.2.19.2 is deleted: "(ii) FII investments would be permitted under the automatic route and FDI would be permitted under the government approval route." 2.0 The above decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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