Question : ROLE OF FIPB



(a) whether there is a proposal to enlarge the automatic licensing route as administered by the RBI and reduce the role of the FIPB; and

(b) if so, the details thereof alongwith the reasons, therefor?

Answer given by the minister

Minister of State in the Ministry of Finance (Shri Anandrao V. Adsul)

(a) & (b): No, Sir. At present there is no such proposal under consideration of the Government. Foreign Direct Investment upto 100% is permitted on automatic route in most sectors. Approval of FIPB is required only in a few sectors such as broadcasting, domestic Airlines, integrated townships, defence industry, tea plantations, etc. Applications made to FIPB are considered on the basis of notified guidelines and normally disposed of within a time frame of six weeks from the date of receipt of the application.