The union cabinet is likely to take a call tomorrow on winding up of the 25-year-old Foreign Investment Promotion Board (FIPB), which currently vets FDI proposals requiring the Government approval.
Finance Minister Arun Jaitley in his Budget on February 1 announced scrapping of the inter-ministerial body, which comes uder the finance ministry’s Department of Economic Affairs.
A suitable mechanism may also be proposed by the Cabinet tomorrow to deal with foreign direct investment in sensitive sectors, sources said.
last week, Commerce and Industry Minister Nirmala Sitharaman had said a decision has taken for closure of the FIPB.
“Necessary arrangements will have to be made on which discussions have happened among several ministries... The Cabinet has to take a call on it,” she had said.