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FDI rules relaxed, debt-ridden Air India opened for foreign investment

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Modi govt relaxes FDI rules, will allow foreign airlines to invest in Air India

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Narendra Modi Cabinet approves slew of changes in FDI rules, 100 per cent FDI through automatic route in single brand retail allowed

Over three years after it took a strong position against the then Dr Manmohan Singh-led UPA government’s decision for allowing foreign direct investment in various sectors, including single and multi-brand retail, the BJP under Prime Minister Narendra Modi appears to be going all out to promote foreign investment in various sectors of India’s stagnating economy.

On Tuesday, a meeting of the Union Cabinet chaired by the Prime Minister decided to substantially relax rules for FDI in a host of sectors, including single brand retail trading (SBRT), construction and civil aviation. The Cabinet has approved amendments to the Centre’s FDI policy in the civil aviation sector, paving the way for a liquidity infusion in the cash-strapped national carrier – Air India – which was hitherto excluded from the list of India’s airline operators in which FDI was allowed.

“As per the extant policy, foreign airlines are allowed to invest under Government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital. However, this provision was presently not applicable to Air India, thereby implying that foreign airlines could not invest in Air India. It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India,” an official statement from the government said after the Cabinet meeting.

The Cabinet has decided that FDI in the debt-ridden Air India will be permitted on the condition that it does not exceed 49 per cent either directly or indirectly and that “substantial ownership and effective control of Air India shall continue to be vested in Indian National.”

The Centre has sought to justify its move claiming that the relaxation of FDI norms would help provide ease of doing business and lead to larger foreign investment inflows.

The Prime Minister and his cabinet seem to have realised that FDI is a major driver of economic growth and a source of non-debt finance for the economic development of the country. It is pertinent to recall that while the BJP was in Opposition and Modi was chief minister of Gujarat, he along with Arun Jaitley and Sushma Swaraj – then Leaders of Opposition in the Rajya Sabha and Lok Sabha respectively – had led the saffron party’s charge against the UPA government’s FDI policy.

Now, at a time when the country’s GDP seems to be on a steady decline amid projections of continuing stagnation in the domestic economy owing to disruptions caused by the Goods and Services Tax (GST) rollout, the Modi government is going all out to embrace a tool on boosting investment inflows that it had once vociferously decried for being against the interests of India.

Besides opening up Air India for FDI, the other key decision taken at Tuesday’s Cabinet meet was the red-carpet rollout for foreign investment in single brand retail trading.

“Extant FDI policy on SBRT allows 49 per cent FDI under automatic route, and FDI beyond 49 per cent and up to 100 per cent through Government approval route. It has now been decided to permit 100 per cent FDI under automatic route for SBRT,” the official statement said.

“It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1st April of the year of the opening of first store against the mandatory sourcing requirement of 30 per cent of purchases from India. For this purpose, incremental sourcing will mean the increase in terms of value of such global sourcing from India for that single brand in a particular financial year over the preceding financial year, by the non-resident entities undertaking single brand retail trading entity, either directly or through their group companies. After completion of this 5 year period, the SBRT entity shall be required to meet the 30 per cent sourcing norms directly towards its India’s operation, on an annual basis,” the government said.

On FDI in the construction sector, the government said: “It has been decided to clarify that real-estate broking service does not amount to real estate business and is therefore, eligible for 100 per cent FDI under automatic route.”

The cabinet also decided to allow FIIs/FPIs to invest in power exchanges through primary market as well. So far 49 per cent FDI was permitted under automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 but FII/FPI purchases were restricted to secondary market only.

The Centre has also decided to relax the rules followed for approval of FDI proposals that are moved in the automatic route sectors.

As per the existing procedures, FDI applications involving investments from Countries of Concern, requiring security clearance as per the extant FEMA 20, FDI Policy and security guidelines are to be processed by the Union home ministry for investments falling under automatic route sectors. Cases pertaining to government approval route sectors requiring security clearance are processed by the respective administrative ministries.

“It has now been decided that for investments in automatic route sectors, requiring approval only on the matter of investment being from country of concern, FDI applications would be processed by Department of Industrial Policy & Promotion (DIPP) for Government approval,” the Cabinet press note said.

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Enforcement Directorate says Arvind Kejriwal is deliberately eating mangoes, sweets, taking sugar with tea to increase his blood sugar level and create ground for bail

The Enforcement Directorate (ED) made the claim before special judge for ED and CBI cases, Kaveri Baweja, who gave directions to the Tihar jail authorities to file a report in the matter which should also include Kejriwal’s diet chart.

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The Enforcement Directorate told the court on Thursday that Delhi Chief Minister Arvind Kejriwal, arrested in liquor policy case, is taking high sugar intake like mangoes and sweets every day deliberately in spite of suffering from type 2 diabetes so that he can create grounds for medical bail. The Enforcement Directorate (ED) made the claim before special judge for ED and CBI cases, Kaveri Baweja, who gave directions to the Tihar jail authorities to file a report in the matter which should also include Kejriwal’s diet chart.

Kejriwal had moved court and also sought permission to consult his regular doctor via video conference because his sugar levels were fluctuating. The judge directed the authorities concerned to file the report by tomorrow, when the court will take up the matter again.

 Advocate Vivek Jain, counsel for Delhi CM Arvind Kejriwal responded to the ED’s argument and said this is an issue made by Enforcement Directorate so that home-cooked food should also be stopped. He said this would have a major impact on his health. Advocate Jain added that whatever Kejriwal is eating is as per his doctors prescribed dietary chart. He said the matter is sub judice and they do not have anything to say.

Advocate Vivek Jain objected to the Enforcement Directorate’s submission and said that the agency is making these allegations only for the media. He said that some toffee and other things are given to diabetic patients so that they can maintain their sugar levels. Jain added that Kejriwal is withdrawing his application and will file a better one later.

AAP minister Atishi Marlena said that Arvind Kejriwal had fallen ill and lost about 4.5 kg since his arrest on March 21. She addressed a press conference where the AAP leader said, Arvind Kejriwal is a severe diabetes patient but he never lets his health issue come as the way of his in the service to the nation.

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Enforcement Directorate seizes Shilpa Shetty’s husband Raj Kundra’s properties worth Rs 97 crore

The Enforcement Directorate said in a statement that the Mumbai zonal office of ED has provisionally attached immovable and movable properties of Kundra under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

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The Enforcement Directorate on Thursday seized businessman Raj Kundra’s properties worth Rs 97.79 crore. The siezed properties include a residential flat in Mumbai’s Juhu, which is named after his wife and Bollywood actor Shilpa Shetty.  The Enforcement Directorate said the seized properties include another property which is a residential bungalow in Pune and Equity shares in the name of Raj Kundra.

The Enforcement Directorate said in a statement that the Mumbai zonal office of ED has provisionally attached immovable and movable properties of Kundra under the provisions of Prevention of Money Laundering Act (PMLA), 2002. The Enforcement Directorate began the investigation on the basis of a number of FIRs which were registered by Delhi Police and Maharashtra Police. It is being said that Kundra collected large sums of money in the form of bitcoins which were worth Rs 6,600 crore in 2017 from the public with the false promises of 10 % monthly return in the form of bitcoins.

The ED said that it was planned that the collected bitcoins will be used for bitcoin mining and investors will get to get a large return in Crypto assets. But the promoters cheated the investors as they concealed the ill-gotten bitcoins in obscure online wallets. The Enforcement Directorate revealed in its investigation that Raj Kundra received 285 bitcoins from the mastermind and promoter of Gain Bitcoin Ponzi Scam Amit Bhardwaj for setting up bitcoin mining farm in Ukraine.

The Enforcement Directorate in its statement said that the bitcoins were sourced out of proceeds of crime collected by Amit Bhardwaj from gullible investors. Since the deal did not go through, so Kundra is still in possession and enjoyment of 285 bitcoins which are valued at more than Rs 150 crore. Earlier a number of search operations were conducted in connection with this case, leading to the arrest of three people — Simpy Bhardwaj on December 17, 2023, Nitin Gaur on December 29, 2023, and Nikhil Mahajan on January 16, 2023.

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Religious outfit vandalises The Blessed Mother Teresa High School in Telangana after teachers object to students wearing Hanuman Deeksha dress

The Religious group broke glass windows and flower pots and pelted stones on the statue of St. Mother Teresa at the school’s entrance. The religious outfit also attacked Father Jaimon Joseph, the school manager.

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A religious group shouting Jai Shri Ram has vandalised a Catholic school and assaulted a priest in Telangana’s Mancherial district on Tuesday. The saffron mob staged protest and vandalised The Blessed Mother Teresa High School in Kannepally village. They broke glass windows and flower pots and pelted stones on the statue of St. Mother Teresa at the school’s entrance. The religious outfit also attacked Father Jaimon Joseph, the school manager.

The priest who is a member of the Missionary Congregation of the Blessed Sacrament (MCBS) said some of members of the mob even slapped and threw punches at him while others attacked him from behind. The religious outfit accused the school management of not allowing Hindu students to wear their religious costumes. The school authorities said the allegation made by the mob is misleading and has no truth in it.

Earlier, the students who wore religious costumes had informed the school principal that it was part of a 21-day special religious practice. The principal said he had only asked the students to bring their parents to school after noticing that they are not wearing the school uniform.

Later, members of the religious outfit started protesting outside the school. They demanded action should be taken against the management for stopping the students from entering the school and appearing for their annual examinations as they were wearing the Hanuman deeksha dress.

The priest said soon after the video started circulating on social media and became viral with hate messages against Christians. After this incident many Hindus reached the school and vandalized it. A complaint has been lodged at the local police station by the school management, but no arrests have been made so far. Instead of taking action against the miscreants, the police have filed a case against the school management for hurting religious sentiments of the local people.

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