The Department of Industrial policy and promotion ( DIPP) held first round of inter-ministerial consultation on the proposal to raise FDI ceilings in different segments, during which representatives of the Home Ministry raised security issues in sectors like defence and telecom.
The meeting, which was headed by DIPP secretary Saurabh Chandra took place in the backdrop of the finance ministry's proposal for increasing the FDI in almost all
“Representatives of the Home Affairs were present in the meeting because they have concerns regarding I&B, telecom, defence, space and civil aviation,” Secretary in the Department of Industrial Policy and Promotion (DIPP) Saurabh Chandra told reporters after the meeting.
He said concerns of Ministry of Home Affairs have been “conveyed wherever raised to the different departments”.
However, he also said FDI in many of these sectors requires a security licence.
He hoped that by July 5 all the concerned departments and ministries would send their views and the DIPP would submit a detailed report to Commerce and Industry Minister Anand Sharma by July 7.
Representatives of ministries of Information and Broadcasting, telecom, space, civil aviation, communications, petroleum and natural gas attended the meeting.
“I&B would send their comments in a couple of days on raising FDI cap in print media. Telecom FDI issue is coming up before Telecom Commission tomorrow. The defence minister would be writing to our minister on the sector,” he said.
Further, he said tomorrow's meeting will be held with department of pharma, mining, MSME and consumer affairs.
The proposal of raising FDI in multi-brand retail to 74 per cent will also be discussed tomorrow, he added.
On FDI in existing pharma firms, Chandra said issues which would be discussed are continuation of manufacturing of essential drugs for the next five years by the firm in which foreign investment has been made; maintaining the level of highest expenditure in R&D made in the last three years for next five years and how to report compliance of the above issues.