Govt-Ficci agency to attract FDI
The Financial Express, September 11, 2009, Page 1
fe Bureaus, New Delhi
A day after an International Finance Corporation report showed that India had slipped in its ease of doing business rankings, the government on Thursday approved the setting up of a not-for-profit, single-window facilitator for prospective overseas investors. The move comes as India saw foreign direct investment (FDI) worth $3.5 billion in July—an annual increase of 50%—indicating that the slump in inflows had been arrested.
The new company, christened Invest India, will be set up as a joint venture between the department of industrial policy & promotion (DIPP) and industry lobby Ficci. State governments will be offered a 0.5% stake in the company, totalling 14%, while the Centre would have 35%. Ficci will hold the remaining 51%.
Other countries that have similar set-ups include Australia (Austrade), China (China Investment Promotion Agency), US (Invest in America) and Austria (Austrian Business Agency). “Globally, governments have established a structural mechanism to attract investment. Invest India (will) make the country more attractive as an FDI destination. This company will act as a first reference point for prospective foreign investors,” said commerce minister Anand Sharma.
The company will have three primary roles: hand-holding prospective foreign investors, promoting investment and providing feedback on FDI policy. To be established with an authorised capital of Rs 10 crore, Invest India will have the DIPP secretary as ex-officio chairman and a professional managing director. The board will see an equal number of DIPP officials and Ficci-nominated members.
Sharma clarified that in sectors with FDI caps like telecommunications, defence production and media, overseas investors would still have to obtain permission from the inter-ministerial FIPB. Invest India would help companies that need to apply to FIPB with the formalities. “Invest India will have a coordination and facilitation role, and act as a one-stop shop for all kinds of investment services,” said DIPP secretary Ajay Shankar.
Explaining the fee-based functions of the company, Ficci secretary-general Amit Mitra said, “Invest India will provide information clarity on the different departments and norms at state and central level. If there are issues arising at any level, Invest India will assist in ironing them out.”
The Financial Express, September 11, 2009, Page 1
fe Bureaus, New Delhi
A day after an International Finance Corporation report showed that India had slipped in its ease of doing business rankings, the government on Thursday approved the setting up of a not-for-profit, single-window facilitator for prospective overseas investors. The move comes as India saw foreign direct investment (FDI) worth $3.5 billion in July—an annual increase of 50%—indicating that the slump in inflows had been arrested.
The new company, christened Invest India, will be set up as a joint venture between the department of industrial policy & promotion (DIPP) and industry lobby Ficci. State governments will be offered a 0.5% stake in the company, totalling 14%, while the Centre would have 35%. Ficci will hold the remaining 51%.
Other countries that have similar set-ups include Australia (Austrade), China (China Investment Promotion Agency), US (Invest in America) and Austria (Austrian Business Agency). “Globally, governments have established a structural mechanism to attract investment. Invest India (will) make the country more attractive as an FDI destination. This company will act as a first reference point for prospective foreign investors,” said commerce minister Anand Sharma.
The company will have three primary roles: hand-holding prospective foreign investors, promoting investment and providing feedback on FDI policy. To be established with an authorised capital of Rs 10 crore, Invest India will have the DIPP secretary as ex-officio chairman and a professional managing director. The board will see an equal number of DIPP officials and Ficci-nominated members.
Sharma clarified that in sectors with FDI caps like telecommunications, defence production and media, overseas investors would still have to obtain permission from the inter-ministerial FIPB. Invest India would help companies that need to apply to FIPB with the formalities. “Invest India will have a coordination and facilitation role, and act as a one-stop shop for all kinds of investment services,” said DIPP secretary Ajay Shankar.
Explaining the fee-based functions of the company, Ficci secretary-general Amit Mitra said, “Invest India will provide information clarity on the different departments and norms at state and central level. If there are issues arising at any level, Invest India will assist in ironing them out.”
Posts
No comments:
Post a Comment