In a bid to increase the foreign direct investment (FDI) in India, the Cabinet Committee on Economic Affairs has approved a proposal to review the policy of approvals for foreign investment. Telecom and Media have been key sectors for FDI, and several companies including NDTV, Verizon Communications, Sify, Cable & Wireless, Dainik Bhaskar, Unitech Wireless, Devas Multimedia, UTV Software, Dish TV and others have applied to the Foreign Investment Promotion Board (FIPB) for approvals. The changes are likely to help increase FDI in India, and make these investments attractive and easy. Remember that the Indian government is facing an ever increasing fiscal deficit this year, and may not be able to raise the Rs. 33,000 crores it was expecting from 3G auctions. According to the new guidelines, proposals involving foreign investments of more than Rs 12 billion will be looked into by the CCEA and anything below that will be handled by the Finance Minister. Until now proposals with total project cost of up to Rs 6 billion were approved by the Finance Minister and proposals above that were looked into by the Cabinet Committee on Economic Affair (CCEA). These proposals also had to be first recommended by the FIPB. The changes had been proposed by the Department of Industrial Policy & Promotion. It has also been approved that if foreign investments have prior approval from the FIPB, CCFI (Cabinet Committee on Foreign Investment) or CCEA on initial investments than the following cases would not require fresh approvals: Cases of entities whose activities…
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