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        News and Press Release

        FDI DURING FIVE YEAR PLANS

        March 12, 2008

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        Foreign Direct Investment (FDI) inflows during 9th Five Year Plan (1997-2002) was US $ 16.33 billion and during 10th Five year plan (2002- 2007), the Inflows was $ 30.80 billion.

        The average FDI inflows per year during the 9th Five Year Plan was US $ 3.2 billion and during the 10th Five Year Plan the average per year was US $ 6.16 billion.

        The top five sectors attracting FDI during April 2000 to December 2007 are Services Sector, Computer software & hardware, telecommunications, construction activities and automobile industry. Year wise FDI inflow in infrastructure sector during April 2000 to December 2007 is given below.

        The extant policy for most of the infrastructure sectors permits FDI up to 100% on the automatic route. Statement showing FDI policy in the infrastructure sectors, is also given below.

        This information was given by the Minister of State for Industry, Dr. Ashwani Kumar, in a written reply in the Lok Sabha today.

        YEAR WISE FDI INFLOWS DURING APRIL 2000 TO DECEMBER 2007

        Infrastructure Sector

        (Amount in US$ million)

        Sl No

        Year

        Amount

        1

        2000-01( Apr-Mar)

        292.37

        2

        2001-02

        1,902.26

        3

        2002-03

        347.33

        4

        2003-04

        388.37

        5

        2004-05

        456.00

        6

        2005-06

        914.04

        7

        2006-07

        2,179.39

        8

        2007-08(Apr-Dec)

        4,095.80

          Grand Total

        10,575.56

        Note : Amount includes the Inflows received through SIA/FIPB route, acquisition of existing shares and RBI's automatic route only.

        Top of Form

        Bottom of Form

        SECTOR

        FDI CAP /EQUITY

        ENTRY ROUTE

        CONDITIONS

        Relevant Press Note issued by DIPP dipp.gov.in

        Airports

        (a) Greenfield projects

        100%

        Automatic

        Subject to sectoral regulations notified by Ministry of Civil Aviation www.civilaviation.nic.in

        PN 4 / 2006

        (b) Existing projects

        100%

        FIPB beyond 74%.

        Subject to sectoral regulations notified by Ministry of Civil Aviation www.civilaviation.nic.in

        PN 4 / 2006

        Construction Development Projects, including housing, commercial premises, resorts, educational institutions, recreational facilities, city and regional level infrastructure, townships.

        100%

        Automatic

        Subject to conditions notified vide Press Note 2 (2005 Series) including:

        a. minimum capitalization of US$ 10 million for wholly owned subsidiaries and US$ 5 million for joint venture. The funds would have to be brought within six months of commencement of business of the Company.

        b. Minimum area to be developed under each project- 10 hectares in case of development of serviced housing plots; and built-up area of 50,000 sq. mts. in case of construction development project; and any of the above in case of a combination project.

        [Note: For investment by NRIs, the conditions mentioned in Press Note 2 / 2005 are not applicable.]

        PN 2 / 2005 & PN 2 / 2006

        Petroleum & Natural Gas Sector

        (a) Other than Refining and including market study and formulation; investment/ financing; setting up infrastructure for marketing in Petroleum & Natural Gas sector.

        100%

        Automatic

        Subject to sectoral regulations issued by Ministry of Petroleum & Natural Gas; and in the case of actual trading and marketing of petroleum products, divestment of 26% equity in favour of Indian partner/public within 5 years. www.petroleum.nic.in

        PN 1 / 2004 &

        PN 4 / 2006

        (b) Refining

        26% in case of PSUs 100% in case of Private companies

        FIPB (in case of PSUs) Automatic (in case of private companies)

        Subject to Sectoral policy www.petroleum.nic.in

        PN 2 / 2000

        Telecommunication

        (a) Basic and cellular, Unified Access Services, National/International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value added telecom services

        74% (Including FDI, FII, NRI, FCCBs, ADRs, GDRs, convertible preference shares, and proportionate foreign equity in Indian promoters/ Investing Company)

        Automatic up to 49%. FIPB beyond 49%

        Subject to guidelines notified in the PN 5 / 2005 Series

        PN 5 / 2005

        (b) ISP with gateways, radio-paging, end-to-end bandwidth.

        74%

        Automatic up to 49%. FIPB beyond 49%

        Subject to licensing and security requirements notified by the Department of Telecommunications

        PN 4 / 2001

        (c) ISP without gateway, infrastructure provider providing dark fibre, electronic mail and voice mail

        100%

        Automatic up to 49%. FIPB beyond 49%

        Subject to the condition that such companies shall divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Also subject to licensing and security requirements, where required.

        PN 9 / 2005

        (d) Manufacture of telecom equipments

        100%

        Automatic

        Subject to sectoral requirements. www.dotindia.com

         

        Power including generation Sectoral (except Atomic energy); Regulations transmission, distribution and Power Trading

         

         

        Subject provisions of the Electricity Act, 2003 www.powermin.nic.in

        PN 2 / 1998, PN / 7 2000, & PN 4 / 2006

        Ports

        100%

        Automatic

        Subject to sectoral regulations

        PN 2 / 2000

        Roads & Highways

        100%

        Automatic

        Subject to sectoral regulations

        PN 2 / 2000

        Shipping

        100%

        Automatic

        Subject to sectoral regulations

        PN 2 / 2000

        FDI policy caps and entry routes: many infrastructure sectors allow up to 100% automatic foreign equity subject to sectoral conditions. FDI policy for infrastructure sectors generally permits up to 100% foreign equity on the automatic route, subject to sectoral regulations and prescribed conditions. Certain sectors permit full automatic entry while others impose caps or require FIPB approval beyond specified thresholds; sectoral press notes specify conditions such as minimum capitalization, project size, licensing and security requirements, and in some cases mandatory minority divestment within a prescribed period.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                FDI policy caps and entry routes: many infrastructure sectors allow up to 100% automatic foreign equity subject to sectoral conditions.

                                FDI policy for infrastructure sectors generally permits up to 100% foreign equity on the automatic route, subject to sectoral regulations and prescribed conditions. Certain sectors permit full automatic entry while others impose caps or require FIPB approval beyond specified thresholds; sectoral press notes specify conditions such as minimum capitalization, project size, licensing and security requirements, and in some cases mandatory minority divestment within a prescribed period.





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