Cabinet approves scrapping of FIPB

Only 11 sectors now need prior approvals

The Union Cabinet on Wednesday approved scrapping of the 25-year-old Foreign Investment Promotion Board (FIPB) tasked with approving foreign direct investment (FDI) proposals requiring government oversight.

The Union Budget for 2017-18 had made a proposal for its abolition. Detailing the Cabinet decision, Finance Minister Arun Jaitley said since 90-95% FDI has been coming via automatic route over the last few years and only 11 sectors now needed prior approvals for foreign investment, the respective ministries could now decide on FDI in these 11 sectors.

He said in some cases a reference may be made to the home ministry for permission. “Henceforth, the work relating to processing of applications for FDI and approval of the government thereon under the extant FDI Policy and FEMA, shall now be handled by the concerned ministries/departments in consultation with the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce, which will also issue the standard operating procedure (SOP) for processing of applications and decision of the government under the extant FDI policy,” an official statement said after the Cabinet meeting.

In addition, foreign investors will find India more attractive destination and this will result in more inflow of FDI. The move will provide ease of doing business and will help in promoting the principle of Maximum Governance and Minimum Government, it said.
FIPB is an inter-ministerial body under the finance ministry’s Department of Economic Affairs that processes FDI proposals and makes recommendations for government approval.

Assam to get AIIMS

The Union Cabinet on Wednesday approved setting up of an All India Institute of Medical Sciences (AIIMS) at Kamrup in Assam, two days ahead of Prime Minister Narendra Modi’s visit to the state to roll out functions to mark the third anniversary of the NDA government, DHNS reports from New Delhi.
The function also coincides with the first year of the BJP-led government in Assam.
The institute will cater to healthcare in the eight states of Northeast.