(a) the norms followed in according approval to the infrastructure project proposals
for raising foreign funds by domestic companies;
(b) whether the Government of India proposes to simplify the same;an
(c) if so, the details thereof and if not, the reasons therefor?
MINISTER OF STATE IN MINISTRY OF FINANCE(SHRI NAMO NARAIN MEENA)
(a), (b) & (c): Domestic companies implementing infrastructure projects can raise
off shore funds through External Commercial Borrowings (ECB), Foreign Institutional
Investments (FIIs) and Foreign Direct Investment (FDI).
Companies engaged in major infrastructure sectors like roads, power, airports,
ports, telecom are allowed to raise foreign investment by way of equity upto 100%
through the automatic route. In case of existing airports prior government approval
is needed for FDI beyond 75%, In case of telecom sector the following sectoral caps exist:
(i) Basic and cellular, Unified Access Services, NLD/ILD, V-Sat, Public Mobile
Radio Trunk Services, Global Mobile communication Services and
other value added telecom Services : 74% FDI permitted; FIPB approval
required beyond 49%
(ii) ISP with gateways, Radio paging, end-to-end bandwidth : 74% FDI permitted;
FIPB approval required beyond 49%
Government of India has liberalized norms pertaining to ECBs and Fll investment in
infrastructure sector from time to time to enable greater flow of off shore funds
into infrastructure projects. The statement placed at Annex gives the details of the
recent initiatives taken to simplify these norms.