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Jun 15, 2017 09:01 PM IST | Source: Moneycontrol.com

Government to launch new foriegn investment proposal portal from July 1: DIPP Secy

The new portal will be called Foreign Investment Facilitation Portal (FIFP),which will be responsible for processing of FDI proposals in a time bound manner, hastening investment inflow into the country.

Government to launch new foriegn investment proposal portal from July 1: DIPP Secy

Shreya Nandi

Moneycontrol News

The government will launch a fresh online portal for foreign investment proposals from July 1, replacing the erstwhile Foreign Investment Promotion Board (FIPB), Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said on Thursday.

The new portal will be called Foreign Investment Facilitation Portal (FIFP),which will be responsible for processing of FDI proposals in a time bound manner, hastening investment inflow into the country.

Under the new mechanism, proposals will be cleared in eight weeks as per the draft standard operating procedure, Abhishek said, adding that it may take little more time in cases if an entity has to obtain security clearance from Ministry of Home Affairs.

Currently,there is no such timeline for clearing investment proposals.

Finance Minister Arun Jaitley had announced in the Budget for 2017-18 the government’s intent to abolish the FIPB and replace it with a new system as part of the government’s broader strategy to ease FDI rules, remove procedural delays and the turn India into a global investment hotspot. The Cabinet had approved the same last month and abolished FIPB.

As per the new mechanism, cases will be handled by nodal ministries and respective sectoral regulators.

The concerned ministry can also consult DIPP in case they need any clarity on FDI policy, as per thedraft SOP. Once a proposal is filed on the web portal, it will be circulated by the competent authority through the portal within two days of the receipt of the proposal to the Reserve Bank of India (RBI) for comments.

The Central Bank then has to give its comments in the next four weeks.

DIPP will be the nodal agency for coordination and would be consultation only when it is abosultely essential. However, Under the new mechanism, a ministry cannot reject a FDI proposal without consulting DIPP or Department of Economic Affairs under finance ministry, Abhishek said.

Currently, around 70 cases are pending with FIPB, which will be transferred to the concerned ministries.

The final SOP will be released next week, Abhishek said.
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