The Union Cabinet has decided yesterday to scrap the 25 year old Foreign Investment Promotion Board in order to ease the process of bringing the Foreign Direct Investments(FDI) under the Single Window Scheme.
The FIPB had secretaries to various departments for vetting of applications and making recommendations to the government. From now on, all the approvals would be handled independently by administrative ministries of different sectors.
The FIPB which was set up post liberalisation in 1991 constituted under the Prime Minister’s Office and subsequently shifted under the Department of Economic Affairs in the Ministry of Finance.
The BJP Government is taking all the measures to ease the business and with this announcement, the investors have to deal only with a single authority. Earlier, e-filing and online processing of FDI applications were introduced.
“Henceforth, the work relating to processing of applications for FDI and approval of the government thereon under the extant FDI Policy and FEMA (Foreign Exchange Management Act) shall now be handled by the concerned ministries/departments in consultation with the Department of Industrial Policy and Promotion,” Finance Minister Arun Jaitley said.
With the scope of ‘Maximum Governance and Minimum Government’ Jaitley now feels that this would make India an attractive destination for investments.
Foreign investment proposals above Rs 5,000 crore would continue to be cleared by the Cabinet Committee on Economic Affairs.