Lok Sabha Question No. 916 (UNSTARRED), answered on 2022-12-12
Subject: Agreement and/or Treaty Between Foreign Countries and Government of Kerala
Ministry: FINANCE
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 916

To be answered on 12th December, 2022/ Agrahayana 17, 1944 (Saka)

## Agreement and/ or Treaty Between Foreign Countries and

Government of Kerala

916. SHRI N. K. PREMACHANDRAN:

Will the Minister of FINANCE be pleased to state:

- (a) Whether the Government of Kerala has sought permission from the  Union  Government  for  entering  into  agreement,  treaty  or MoU  with  Foreign  countries  during  visit  of  Chief  Minister  in foreign  tours  during  the  last  six  years  and  if  so,  the  details thereof;
- (b) Whether the Government of Kerala is empowered to enter into any agreement, treaty or MoU with foreign countries without the approval of the Union Government and if so, the details thereof:
- (c) Whether  the  Union  Government  has  issued  orders,  NOC  or concurrence for the State of Kerala to enter into treaty or MoU with foreign countries and if so, the details thereof;
- (d) Whether  any  foreign  companies  are  permitted  to  invest  in Kerala without knowledge and approval of the Union Government and if so, the details thereof; and
- (e) Whether  the  Government  has  received  any  application  for investment  in  Kerala  from  foreign  companies  as  a  result  of foreign  tour  of  Chief  Minister  of  Kerala  and  if  so,  the  details thereof?

## ANSWER

## MINISTER OF STATE FOR FINANCE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHOWDHARY)

- (a) Yes, The Ministry of External Affairs (MEA), conveyed NOC to the Government of Kerala from political/ international law angle to sign the following MoUs in the last six years:
- i)  MoU  between  Kerala  Automobiles  Ltd.  and  Swiss  e-Bus manufacturing firm HESS.
- ii) Twinning agreement between the Kozhikode Municipal Corporation,  State  of  Kerala  (India)  and  Municipality  of  Sines (Portugal).
- iii) MoU between Additional Skill Acquisition Programme Kerala (ASAP Kerala), State of Kerala, Republic of India and University of Cambridge, United Kingdom.
- iv)  MoU  between  Government  of  Kerala  and  the  Ministry  of Health, Welfare and Sports of Netherlands on Technical Cooperation in the field of Sport Development.
- v)  MoU  between  State  Archives  Department,  Government  of Kerala  and  the  National  Archives  of  the  Netherlands  on  the execution of the Shared Cultural Heritage on 17 th  October, 2019.
- vi)  Amendment  to  MoU  between  State  Archives  Department, Government of Kerala and the National Archives of the Netherlands on the Execution of the Shared Cultural Heritage on 28 th  February, 2022.

vii) An agreement was signed between Norka Roots, Department  of  NORKA,  Government  of  Kerala  and  German Federal Employment Agency in December, 2021 in Thiruvananthapuram for recruitment of nurses from Kerala.

Further, Government of Kerala has informed that as a follow up of the  Hon'ble  Chief  Minister's  visit  to  the  Kingdom  of  Netherlands during 2019, permission was sought by the State Government for a collaboration  between  Kerala  State  Archives  and  the  National Archives of the Netherlands in the area of preservation and digitization  of  the  Dutch  records  in  Kerala.  Permission  was  also sought  from  Government  of  India  for  Centre  of  Excellence  of Floriculture at Ambalavayal, Wayanad.

- (b) The  Legal  &  Treaties  Division  of  Ministry  of  External  Affairs had  earlier  examined  a  similar  issue  in  consultation  with  the Ministry of Law & Justice. The Ld. Solicitor General after examining the  question  opined  that,  'It  is  clarified  that  State  Government cannot enter into an MoU with a foreign government or its entity or a foreign  NGO  without  taking  the  approval  of  the  Government  of India'.
- (c) Same as part (a)'s reply

(d) Foreign  Direct  Investment  (FDI)  policy,  as  administered  by Foreign  Exchange  Management  Act,  1999,  is  an  enabling  policy which  is  uniformly  applicable  across  the  country. Government  has put in place a liberal and transparent policy for FDI, wherein most of the sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/fully, compulsorily and mandatorily  convertible  preference  shares  of  an  Indian  company, through the Automatic Route or the Government Route. Under the Automatic Route, the  non-resident  investor  or  the  Indian  company does  not  require  any  approval  from  Government  of  India  for  the investment.  Under  the  Government  Route,  prior  approval  of  the Government of India is required. (e) No such information is available with the relevant departments

- in Government of India.

*****