New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) notified Wednesday the recent decisions to relax foreign direct investment (FDI) norms in sectors such as coal mining, contract manufacturing, and single-brand retail trading.
The DPIIT, under the Commerce and Industry Ministry, deals with FDI-related issues. It notifies FDI-related government decisions through press notes.
The department has also notified the decision to allow 26 per cent FDI in digital media, a move over which certain industry and experts have raised issues.
The government August 28 allowed 100 per cent foreign investment in coal mining and contract manufacturing, eased sourcing norms for single-brand retailers and approved 26 per cent foreign investment in digital media, as it looks to boost economic growth from over six-year low of five per cent.
According to the press note of the department, 100 per cent FDI is permitted for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957.
Amending FDI norms for the manufacturing sector, DPIIT said foreign investment in ‘manufacturing’ sector is under automatic route.
“Manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on principal to principal or principal to agent basis,” the note said.
In the coal sector, now foreign players can invest 100 per cent for mining and sale of coal under the automatic route. They will also be able to carry out other associated processing infrastructure operations related to the sector such as coal washery, crushing, coal handling, and separation (magnetic and non-magnetic).
The government has also permitted 26 per cent overseas investments through the government approval route for uploading or streaming of news and current affairs through digital media, on the lines of print media. The current FDI policy was silent on the fast-growing digital media segment.
PTI
