<h1>Government Considers Capping Royalty Payments for Tech Transfers to Boost Local Profits and Protect Shareholders.</h1> The government is considering reintroducing restrictions on royalty payments for technology transfers due to excessive outflows to foreign companies. The Department for Promotion of Industry and Internal Trade plans to circulate a proposal for inter-ministerial consultation. The proposal may impose limits on royalty payments for collaborations involving foreign entities. Previously, a similar proposal suggested capping royalties at 4% of domestic sales and 7% of exports initially, with reductions over time. The finance ministry had objected, citing potential negative signals to foreign investors. The move aims to boost domestic company profits, protect minority shareholders, and preserve foreign exchange reserves.