<div><strong>BW Online Bureau</strong></div><div> </div><div>Two days after the Bihar Poll debacle, the NDA Government has announced easing of foreign direct investment or FDI in mining, civil aviation, defence, broadcasting, construction. It has also relaxed norms related to investment by companies owned and controlled by NRIs.</div><div> </div><div>"To further boost this entire investment environment and to bring in foreign investments in the country, the Government has brought in FDI related reforms and liberalisation touching upon 15 major sectors of the economy," the government said in a press release.</div><div> </div><div>"The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors is wasted. It is one more proof of minimum government and maximum governance," the press release said.</div><div> </div><div><strong>Broadcasting: News Channels See FDI Going Up To 49% On Automatic Route</strong></div><div>In a major move, the FDI cap on news channels has been moved up to 49 per cent and that too on an automatic route. Which means, any Indian news channels can attract FDI up to 49 per cent without applying for permission from the foreign investment promotion board or FIPB.</div><div> </div><div>Similarly, giving a big push to the ongoing digitization initiative of the central government, FDI cap across direct to home (DTH) and the digital Cable distribution services has been hiked to 100 per cent (up to 49 per cent via automatic route; beyond 49 per cent through government approval), Finance Minister Arun Jaitley said.</div><div> </div><div><strong>FDI In Regional Air Transport Service</strong></div><div>In order to give a fillip to regional connectivity and to make 30 crore middle class citizens fly by 2022, the government has allowed 49 per cent foreign investment in Regional Air Transport Services. Already, the FDI norms in civil aviation allows up to 49 FDI in Scheduled Air Transport Service and Domestic Scheduled Passenger Airline. "It has now been decided that Regional Air Transport Service will also be eligible for foreign investment up to 49 per cent under automatic route," the finance minister said.</div><div> </div><div>In a bid to give a boost to the overall civil aviation sector in India, the Government on Friday, October 30, 2015 announced the Draft Civil Aviation policy which lays down framework to boost regional connectivity by utilising over 300 unused airstrips. The policy proposed to cap airfares for regional connectivity to Rs 2,500 per hour of flying, imposition of 2 per cent surcharge on domestic and foreign tickets to fund regional connectivity, providing Rs 15,000 crore support to the operationalisation of unused airstrips into no-frills airports</div><div> </div><div>The government also increased the foreign equity caps of Non-Scheduled Air Transport Service, Ground Handling Services, Satellites-establishment and operation and Credit Information Companies from 74 per cent to 100 per cent. Sectors other than Satellites-establishment and Operation have been placed under the automatic route, the government said.</div><div> </div><div>In the draft civil aviation policy the government has already proposed at least three ground handling agencies including Air India's subsidiary/JV at an airport. Under the proposed policy, domestic airlines and charter operators will be free to carry out self-handling themselves or through their subsidiaries or will be free to outsource the same to other airlines. However, the ground handling staff will have to be on the rolls of the airlines or their subsidiaries who will be permitted to take contract employees provided such employment contracts will be for a period of at least one year for security reasons.</div><div> </div><div>UK-based economist and member of Parliament Lord Meghnad Desai was quoted in the media saying this will go down as an important economic reforms. "It's good that government started early on reforms process," he was quoted by some news websites.</div><div> </div><div><strong>Foreign Investment Promotion Board (FIPB) Threshold Increased</strong></div><div>So far, the FIPB was authorised to take up and consider proposals having total foreign equity inflow up to Rs 3000 crore. Proposals above Rs 3000 crore had to be placed for consideration before the Cabinet Committee on Economic Affairs. This will not be the case going forward as the government has also decided that the threshold limit for FIPB approval will be increased to Rs 5000 crore. "The amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment," a detailed notification by the DIPP said.</div>
