Lok Sabha Question No. 4700 (UNSTARRED), answered on 2023-03-29
Subject: FDI Proposals
Ministry: COMMERCE AND INDUSTRY
Asked by: Goddeti Madhavi, Midhun Reddy, Reddeppa Nallakonda Gari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 4700.

TO BE ANSWERED ON WEDNESDAY, THE 29 TH  MARCH, 2023.

## FDI PROPOSALS

4700.  SHRIMATI GODDETI MADHAVI: SHRI P.V. MIDHUN REDDY: SHRI N. REDDEPPA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the number of FDI proposals that are pending with the Government;
- (b) whether the Government has formulated any policy for timely clearance of the FDI proposals;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government has taken any concrete steps to promote FDI in the country; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a): 94 Proposals.
- (b): Yes. Detailed Standard Operating Procedure (SOP) has been put in place for timely clearance of FDI Proposals.
- (c): The steps taken by the Government for timely clearance of the FDI proposals may be seen as under:
- i. Standard operating procedure (SOP) for processing FDI Proposals has  been  issued  by  DPIIT.  According  to  SOP,  the  prescribed timelines for processing of FDI Proposals are as follows:

## Time Limits

| S. No.   | Action Points                                                                                                                                     | Time Period     | Cumulative Time Period   |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------------------------|
| (i)      | Dissemination of proposal by DPIIT to the Concerned Ministry/ Department                                                                          | Two (02) days   | One (01) Week            |
| (ii)     | Time for submission of signed physical copy of the proposal from the date of online submission by applicant to the Competent Authority, if needed | One (01) Week   | One (01) Week            |
| (iii)    | Initial scrutiny of the proposal and documents attached therewith, and seeking relevant additional information/documents from the applicant       | One (01) Week   | Two (02) Weeks           |
| (iv)     | Time limit for submission of clarification by DPIIT on specific issues of FDI Policy                                                              | Two (02) Weeks  | Four (04) Weeks          |
| (v)      | Time limit for submission of comments by consulted Ministry/ Department/ RBI/ Regulator/any Other Stakeholder                                     | Four (04) Weeks | Six (06) Weeks           |
| (vi)     | Time limit for submission of comments by MHA on proposals requiring security clearance                                                            | Six (06) Weeks  | Eight (08) Weeks         |
| (vii)    | Time limit for approval on proposals by Competent Authority for grant of approval                                                                 | Four (04) Weeks |                          |
| (vii)    | Proposals not requiring security clearance                                                                                                        | Four (04) Weeks | Ten (10) Weeks           |
| (vii)    | Proposal Requiring security clearance                                                                                                             | Four (04) Weeks | Twelve (12) Weeks        |

## Note:

1. Additional  time  of  two  (02)  weeks  will  be  given  to  DPIIT  for consideration of those proposals which are proposed for rejection or  where additional conditions which are not provided in the  FDI  Policy  are  proposed  to  be  imposed  by  the  Competent Authority.
2. Time  limits  allocated  exclude  the  time  taken  by  applicants  in removing   deficiencies   in   the   proposals/supplying   additional information as may be required by the Competent Authority.
3. Time  limits  for  consultation  process  as  mentioned  under  S.No. (iv), (v)  and  (vi)  above,  are  calculated  simultaneously  after  initial scrutiny of   the proposal.
- ii. To  simplify  the  approval  process  of  foreign  Investment  and  to promote  ease  of  doing  business,  FIPB  was  abolished  in  May 2017  and  a  new  regime  has  been  put  in  place.  Under  the  new regime,  process  for  granting  FDI  approvals  has  been  simplified wherein the work relating to processing of applications for FDI has been  delegated  to  the  concerned  Ministries/Departments  and DPIIT is the nodal department for facilitating the process.
- iii. 'Foreign  Investment  Facilitation  Portal  (FIF  Portal)'  has  been launched as the online single point interface of the Government of India  for  investors  to  facilitate  Foreign  Direct  Investment.  The portal   facilitates single window clearance of applications through government approval route. FIFP has been technically integrated with  National  Single  Window  System  (NSWS)  on  05.08.2022, which   is an online single point interface of the Government of India for  investors  to  start  any  industry  in  India  and  take requisite permissions.
- iv. DPIIT being the nodal department reviews pending FDI proposals on  a regular basis for speedy disposal of FDI proposals.
- v. Every  Department  has  a  dedicated  nodal  officer  &  FDI  Cell  for processing FDI Proposals and to ensure timely clearance of FDI Proposals.
8. (d): Yes.
9. (e): To  promote  Foreign  Direct  Investment  (FDI),  Government  has  put  in place an investor friendly policy, wherein most sectors, except certain strategically  important  sectors,  are  open  for  100%  FDI  under    the automatic  route.  Almost  98%  of  FDI  equity  inflow  has  come  under automatic  route  during  the  current  financial  year  2022-23  (up  to December, 2022). Further, FDI Policy is reviewed on an ongoing basis, to ensure  that India remains  an  attractive and  investor friendly destination. This has resulted in the increasing trend of FDI inflows into the country since the last eight years. Changes are made in the policy after  having  consultations  with  stakeholders  including  apex  industry chambers, associations,      representatives      of      industries/groups and other  organizations. FDI policy provisions have been progressively  liberalized   and simplified across various sectors such as Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Power Exchanges, e-commerce activities, Coal Mining, Contract Manufacturing, Civil Aviation etc. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas and Telecom.

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