Govt for new agency to promote FDI

Govt for new agency to promote FDI

The Union Cabinet cleared setting up of ‘Invest India’, the joint venture with industry association FICCI that will hold majority stake and the government the remaining 49 per cent.

The non-profit company, to be incorporated under Section-25 of the Companies Act, “will act as the first reference point for any investor interested in India and will also facilitate setting up business with in the country in coordination with state governments,” Commerce and Industry Minister Anand Sharma told reporters here.

The firm would be purely a promotional and facilitator agency and there is no overlapping with the Foreign Investment Promotion Board (FIPB), which would continue to act as an approval organ of the government. The Centre would divest part of its 49 per cent equity in favour of states.

Sharma said it would be a tripartite company involving the Central government, states and the industry. He said the initiative was in line with about 40 other countries which have similar agencies for investment promotion.However, he said about 80 per cent of the country’s FDI comes through automatic route. The company will have a board of directors with six members from the Department of Industrial Policy and Promotion (DIPP) and six others from FICCI.The DIPP secretary will be its non-executive chairman and a professional managing director would run its day-to-day affairs.

Press Trust of India