Question: Which of the following is not correct about Foreign Investment Promotion Board (FIPB)?
a) It processes FDI proposals and makes recommendations for Government approval.
c) The Minister of Finance who is in-charge of FIPB would consider the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs. 3000 crore.
c) The recommendations of FIPB on proposals with total foreign equity inflow of more than Rs. 3000 crore would be placed for consideration of Cabinet Committee on Economic Affairs (CCEA).
d) It advertizes Indian market in foreign countries.
Ans: (d)
- On May 24, 2017, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved to the phasing out of Foreign Investment Promotion Board.
- The proposal entails abolishing the FIPB and allowing administrative Ministries/Departments to process applications for FDI requiring government approval.
- FDI applications and approval of the Government shall now be handled by the concerned Ministries/Departments in consultation with the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce.
- DIPP will also issue the Standard Operating Procedure (SOP) for processing of applications and decision of the Government under the extant FDI policy.
- The move will provide ease of doing business and will help in promoting the principle of Maximum Governance and Minimum Government.
- It is notable that the Foreign Investment Promotion Board (FIPB) is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval.
- As per the approval rules, The Finance Minister who is in-charge of FIPB considers the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs. 3000 crore. Proposals of more than Rs. 3000 crore are placed for consideration of Cabinet Committee on Economic Affairs (CCEA).
Reference:
http://www.livemint.com/Politics/cbPuYRqrG4de300lL5kkWK/Govt-scraps-foreign-investment-advisory-body-FIPB-report.html
http://pib.nic.in/newsite/PrintRelease.aspx?relid=162097