The Cabinet today approved 51 per cent FDI in multi-brand retail and 100 per cent in Single Brand retail subject to conditions. Breifing newsmen on the decisions of the Cabinet Committee on Economic Affairs, Commerce Minister Anand Sharma said, the conditions for FDI in Single Brand retail include that the foreign investor should be the owner of the brand. Also for proposals involving FDI beyond 51 per cent, thirty per cent sourcing would mandatorily have to be done from Small and Medium Enterprices, village and cottage industries, artisans and craftsmen.
The Minister said, any firm seeking waiver of the mandatory 30 per cent local sourcing norms would have to set up a manufacturing facility in the country.
 

The CCEA also gave the nod for permitting foreign airlines to make foreign investment, up to 49 per cent in scheduled and non scheduled air transport services. The CCEA also approved foreign investment up to 49 per cent including 26 per cent FDI and 23 per cent FII in power Trading Exchanges in compliance with SEBI regulations.
The CCEA also approved the disinvestment of 9.59 per cent equity in Hindustan copper Ltd, 12.15 per cent paid up equity in National Aluminium company Ltd, 10 per cent paid up equity in Oil India Ltd and 9.33 per cent paid up equity in MMTC Ltd.
 

The CCEA also liberalised the foreign investment for companies operting in the broad casting sector from 49 to 74 per cent, these include Teleports, Mobile TV and Headend in- the- Sky Broadcasting service.
The cabinet also approved the financial restructuring of Prasar Bharti and filling up essential posts based on the recommendations of the Group of Ministers. During the next five years government non Plan support will be extended to Prasar Bharti for meeting 100 per cent expenses towards salary and salary related expenses. All other operating expenses towards are to be borne by Prasar Bharti out of internal revenue earning. Information and Broadcasting Minister Ambika Soni said, this will help Prasar Bharti to move forward to fulfill the reponsibilities of Public broadcasting.
The Commerce and Industry Ministy Anand Sharma said, the UPA government has always stood for consensus and these important decisions that would boost economic growth were taken after due consultations with the States and other stake holders. He said, several States had demanded for it while some had expressed reservations. Mr. Sharma said, over ten months of discussions were held for evolving a consensus. Mr. Sharma said, respecting the rights of the states, the prerogative of implemention has been left to the states. He said, retail sales outlets may be set up in those states which agree to allow FDI in Multi Brand Retail Trading. 

 

The Prime Minister Dr. Manmohan Singh has said that the Cabinet has taken many decisions today to bolster economic growth and make India a more attractive destination for foreign investment. Urging all segments of public opinion to support the steps taken in national interest, he expressed confidence that these steps will help strengthen country’s growth process and generate employment in the present difficult times.