TMI BlogConsolidated Policy on Foreign Direct InvestmentX X X X Extracts X X X X X X X X Extracts X X X X ..... roduct retailing) ii. Atomic Energy iii. Lottery Business iv. Gambling and Betting v. Business of chit fund vi. Nidhi Company vii. Trading in Transferable Development Rights (TDRs). viii. Activity/sector not opened to private sector investment II. Sector-specific policy for FDI: In the following sectors/activities, FDI is allowed up-to the limit indicated below subject to other conditions as indicated. Sr.No. Sector/Activity FDI Cap/Equity Entry Route Other conditions I AGRICULTURE 1. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture and Cultivation of Vegetables Mushrooms under controlled conditions and services related to agro and allied sectors. Note : Besides the above, FDI is not allowed in any other agricultural sector/activity 100% Automatic 2. Tea Sector, including tea plantation Note : Besides the above, FDI is not allowed in any other plantation sector/activity 100% FIPB Subject to divestment of 26% equity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26% FIPB Subject to licensing under Industries (Development Regulation) Act, 1951 and guidelines on FDI in production of arms ammunition. 10. Hazardous chemicals, viz., hydrocyanic acid and its derivatives; phosgene and its derivatives; and isocyanates and diisocyantes of hydrocarbon. 100% Automatic Subject to industrial license under the Industries (Development Regulation) Act, 1951 and other sectoral regulations. 11. Industrial explosives -Manufacture 100% Automatic Subject to industrial license under Industries (Development Regulation) Act, 1951 and regulations under Explosives Act, 1898 12. Drugs Pharmaceuticals including those involving use of recombinant DNA technology 100% Automatic Automatic II C POWER 13. Power including generation (except Atomic energy); transmission, distribution and Power Trading. 100% Automatic Subject to provisions of the Electricity Act, 2003 www.powermin.nic.in III SERVICES 14. CIVIL AVIATION SECTOR (i) Airports- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17. Broadcasting a. FM Radio FDI +FII investment up to 20% FIPB Subject to Guidelines notified by Ministry of Information Broadcasting. www.mib.nic.in b. Cable network 49% (FDI+FII) FIPB Subject to Cable Television Network Rules (1994) Notified by Ministry of Information Broadcasting. www.mib.nic.in c. Direct-To-Home 49% (FDI+FII). Within this limit, FDI component not to exceed 20% FIPB Subject to guidelines issued by Ministry of Information Broadcasting. www.mib.nic.in d. Setting up hardware facilities such as up-linking, HUB, etc 49% (FDI+FII) FIPB Subject to Up-linking Policy notified by Ministry of Information Broadcasting. www.mib.nic.in e. Up-linking a News Current Affairs TV Channel 26% FDI+FII FIPB Subject to guidelines issued by Ministry of Information Broadcasting. www.mib.nic.in f. Up-linking a Non- news Current Affairs TV Channel 100% FIPB Subject to guidelines issued by Ministry of Information Broadcasting. www.mib.nic.in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FIIs investing in CICs shall not seek a representation on the Board of Directors based upon their shareholding. 22. Industrial Parks both setting up and in established Industrial Parks 100% Automatic Conditions in Press Note 2(2005) applicable for construction development projects would not apply provided the Industrial Parks meet with the under-mentioned conditions- i. it would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area; ii. the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area. 23 Insurance 26% Automatic Subject to licensing by the Insurance Regulatory Development Authority www.irda.nic.in 24. Investing companies in infrastructure/services sector (except telecom sector) 100% FIPB Where there is a prescribed cap for foreign investment, only the direct investment will be considered for the prescribed cap and foreign investment in an investing company will not be set off against this cap provided the foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to Sectoral policy www.petroleum.nic.in and no divestment or dilution of domestic equity in the existing PSUs. b. Other than Refining and including market study and formulation; investment/financing; setting up infrastructure for marketing in Petroleum Natural Gas sector. 100% Automatic Subject to sectoral regulations issued by Ministry of Petroleum Natural Gas www.petroleum.nic.in 27. Print Media a. Publishing of newspaper and periodicals dealing with news and current affairs 26% FIPB Subject to Guidelines notified by Ministry of Information Broadcasting. www.mib.nic.in b. Publishing of scientific magazines/ specialty journals/ periodicals 100% FIPB Subject to guidelines issued by Ministry of Information Broadcasting. www.mib.nic.in 28. Telecommunications a. Basic and cellular, Unified Access Services, National/ International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value added telecom services 74% (Including FDI, FII, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectors/Activities not listed above, FDI is permitted up to 100% on the automatic route subject to sectoral rules/ regulations applicable. III. Prior Government approval for FDI required in the following circumstances: i) where provisions of Press Note 1 (2005 Series) issued by the Government of India are attracted; ii) where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale sector. ********************************* Notes : 1. Has been corrected vide corrigendum dated 2/7/2008 (Press release) . Earlier it was read as, 25. Non Banking Finance Companies i) Merchant Banking 100% Automatic Subject to: a. minimum capitalization norms for fund based NBFCs - US$ 0.5 million to be brought upfront for FDI up to 51%; US$ 5 million to be brought upfront for FDI above 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months for FDI beyond 75% and up to 100%. b. minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million. c. foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
