Govt to clear FDI cases in 10 weeks.
THE government will clear all FDI proposals requiring approval within a maximum of 10 weeks after the receipt of an application with the new standard operation procedure replacing the Foreign Investment Promotion Board.
According to the standard operation procedure ( SOP) released by Department of Industrial Policy and Promotion ( DIPP) on Thursday, proposals not requiring security clearance would be cleared in eight weeks while applications that require security clearance would take ten weeks for approval.
An additional time of two weeks will be given to DIPP for consideration of proposals proposed for rejection or where additional conditions which are not provided in the FDI policy are proposed to be imposed by the competent authority.
The FDI proposals requiring the government's approval will have to be vetted by the concerned ministries or departments.
Proposals for foreign investment in sectors/ activities requiring government approval would be filed online on the Foreign Investment Facilitation Portal ( FIFP) which is a revamped version of the earlier FIPB portal.
After the proposals are filed online, the DIPP will identify the concerned ministry or department and e- transfer those applications within two days. If a company submits a digitally signed application, it is not required to submit any physical copy.
Calculation of time limits for disposal of applications would be with reference to the date of filing of online application, the DIPP said. Explaining the procedure for processing the applications, it said competent authorities would not replicate an interministerial body in respective ministries to grant approvals.
Once the proposal is received, same would be circulated online within two days by the DIPP to the RBI for comments from FEMA perspective.
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