New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) Wednesday announced the 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. The government August 28 permitted 100 per cent foreign investment in coal mining and contract manufacturing, while easing sourcing norms for single-brand retailers and approved 26 per cent foreign investment in digital media.
Amending FDI norms for the manufacturing sector, it said foreign investment in ‘manufacturing’ sector is under automatic route.
For single brand retail trading, it retail trading through e-commerce can also be undertaken prior to opening of brick and mortar stores, subject to the condition that the company opens brick and mortar stores within two years from date of start of online retail.
It added that a single brand retail company with FDI selling Indian brands now will not have to follow the condition that such firm should sell products under the same brand internationally.
They also need not comply with the condition of signing a legally tenable agreement to undertake the retailing.
Likewise, in the coal sector, now foreign players can invest 100 per cent for mining and sell coal under the automatic route. They will also be able to carry out downstream processing operations like coal washery, crushing, coal handling, and separation.
According to the current FDI policy, 100 per cent foreign investments under the automatic route was allowed for coal and lignite mining for captive consumption by power projects, iron and steel and cement units only.
But, the decision is subject to provisions of the Coal Mines (Special Provisions) Act, 2015, and the Mines and Minerals (Development and Regulation) Act, 1957.
