Govt relaxes FDI norms in civil aviation, defence, pharma

June 20, 2016

New Delhi, Jun 20: Government today relaxed Foreign Direct Investment (FDI) norms in a host of sectors including civil aviation, single-brand retail, defence and pharma by permitting more investments under automatic route.

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Other sectors in which FDI norms have been relaxed include e-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry.

"Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI," said an official statement.

The decision to further liberalise FDI regime with the objective of "providing major impetus to employment and job creation in India" was taken at a meeting chaired by Prime Minister Narendra Modi today.

This is the second major reform in the FDI space. The Centre in last November had significantly relaxed the foreign investment regime.

Among the major decisions, government allowed 100 per cent foreign investment in "scheduled air transport service/ domestic scheduled passenger airline and regional air transport service".

Under the new regime, 49 per cent would be via automatic route and beyond that limit, government nod would be required. At present, up to 49 per cent FDI is permitted in scheduled airlines.

"For NRIs, 100 per cent FDI will continue to be allowed under automatic route.

"However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49 per cent of their paid up capital and subject to the laid down conditions in the existing policy," the release said.

With a view to aid in modernisation of existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100 per cent FDI under automatic route in brownfield airport projects.

Earlier, FDI in brownfield airport projects beyond 74 per cent was under approval route.

In defence sector, foreign investment beyond 49 per cent has been permitted through approval route in cases resulting in access to modern technology in the country or for other reasons.

The government has done away with the clauses pertaining to the 'state-of-art' technology.

Earlier policy allowed FDI in defence sector beyond 49 per cent under the approval route on a case-to-case basis subject to the condition that it would result in access to modern and 'state-of-art' technology in the country.

FDI limit for defence sector has also been made applicable to manufacturing of small arms and ammunitions covered under Arms Act 1959.

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April 20,2024

Union Finance Minister Nirmala Sitharaman, on Friday, said that the Bharatiya Janata Party (BJP) plans to reintroduce electoral bonds in some capacity following extensive consultations with all stakeholders, should it come back to power in the 2024 general elections, according to a report in the Hindustan Times (HT).

HT cited Nirmala Sitharam as saying, “We still have to do a lot of consultation with stakeholders and see what is it that we have to do to make or bring in a framework which will be acceptable to all, primarily retain the level of transparency and completely remove the possibility of black money entering into this.”

However, the Centre has not yet decided whether to seek a review of the ruling made by the Supreme Court (SC), she said.

She further added, “What the scheme, which has been just thrown out by the Supreme Court, brought in was transparency. What prevailed earlier was just free-for-all.”

Launched in 2018, electoral bonds were accessible for acquisition at any State Bank of India (SBI) branch. Contributions made through this programme by corporations and even foreign entities via Indian subsidiaries received full tax exemption, while the identities of the donors remained confidential, safeguarded by both the bank and the recipient political parties.

On February 15, a five-judge Constitution Bench struck down the scheme, deeming it ‘unconstitutional’ due to its complete anonymisation of contributions to political parties. Additionally, the Bench stated that the articulated objectives of curbing black money or illegal election financing did not warrant disproportionately infringing upon voters’ right to information.

FM Sitharaman said, some aspects of the scheme need improvement and they will be brought back following consultations.

She also lashed out at the Opposition’s claims that the BJP disregarded criminal charges against leaders who switched from other parties to join the ruling party.

The HT quoted her as saying, “The BJP can’t sit here and say, you come to my party today, and the case will be closed tomorrow. The case has to go through the courts that have to take a call; they will not just say, “Oh, he’s come to your party, close the case.” Doesn’t happen that way. So is this washing machine a term they want to use for the courts?”

She further said that the Union government plans to simplify the process of taxation and make it easy for investments to come through into the country.

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April 26,2024

Palakkad: Three voters from Palakkad, Malappuram and Alappuzha, and a polling agent in Kozhikode died in seperate incidents in Kerala on Friday.

A man collapsed and died after casting his vote at Vani Vilasini in Chunangad, Ottapalam here on Friday. The deceased Chandran (68) hailed from Modernkattil  in Chunangad. Though rushed to the Ottapalam taluk hopsital, he was declared dead on arrival. Palakkad had recorded a high temperature of 40 degree Celsius on Thursday.

A Madrassa teacher, who came home after voting, collapsed and died. The deceased Alikkannakkal Tharakkal Siddhique (63) was the first voter at the polling station in Vallikkanjiram School at Niramaruthur Grama Panchayat in Tirur.

Kakkazham Veiliparambu Somarajan (82), who voted and returned home from the Kakkazham SN VT High School in Alappuzha also collapsed and died. He was a voter from booth 138.

In another instance, a polling agent died after collapsing at a booth in Kuttichira, Kozhikode on Friday. Maliyekkal Anees (66), a retired KSEB engineer from Haluwa Bazaar, was LDF's polling agent at the 16th booth in Kuttichira Government Vocational Higher Secondary School. He collapsed while doing his duty in the polling booth by 8.30 am. Though rushed to the Government General Hospital, he died by 9.15am. He is survived by wife Adakkani Veettil Zereena, childrens  Fayis Ahammed, Fadhil Ahammed, Akhil Ahammed and Bilal Ahammed.

A man also died in bike accident en route to polling booth in Malappuram on Friday. The deceased is Saidu Haji (75) of Neduvan. The bike rammed a lorry near BM School in Parappanangadi.

Polling began at 7am in all 20 Lok Sabha constituencies in Kerala on Friday. 

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April 25,2024

EVM.jpg

Electronics Corporation of India Ltd and Bharat Electronics Ltd have refused to disclose the names and contact details of the manufacturers and suppliers of various components of EVMs and VVPATs under the RTI Act citing "commercial confidence", according to RTI responses from the PSUs to an activist.

Activist Venkatesh Nayak had filed two identical Right To Information applications with the ECIL and BEL, seeking the details of the manufacturers and suppliers of various components used in the assembling of the electronic voting machines (EVMs) and voter-verifiable paper audit trail (VVPATs).

The VVPAT is an independent vote verification system which enables electors to see whether their votes have been cast correctly.

The ECIL and the BEL, public sector undertakings under the Ministry of Defence, manufacture EVMs and VVPATs for the Election Commission.

Nayak also sought a copy of the purchase orders for the components from both PSUs.

"Information sought is in commercial confidence. Hence details cannot be provided under Section 8(1)(d) of the RTI Act," BEL said in its response.

A similar response was sent by ECIL which said the details requested are related to a product which is being manufactured by ECIL, and third party in nature.

"Disclosing of details will affect the Competitive position of ECIL. Hence, Exemption is claimed under section 8(1) (d) of RTI ACT, 2005," it said.

In response to the purchase order copies, ECIL's central public information officer said the information is "voluminous" which would disproportionately divert the resources of the Public Authority.

"Further, the information will give away the design details of EVM components. The same may pose a danger to the machines produced. Hence, the exemption is claimed U/s 7(9) and under section 8(1)(d) of RTI Act, 2005," ECIL said.

Section 8(1)(d) of the RTI Act exempts from disclosure the information, including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information.

Section 7(9) of the Act says the information shall ordinarily be provided in the form in which it is sought unless it would disproportionately divert the resources of the public authority or would be detrimental to the safety or preservation of the record in question.

"I don't know whose interests they are trying to protect against the right to know of close to a billion-strong electorate. ECIL said that disclosure of the purchase orders will reveal the design details of the components and this may pose a danger to the machines produced. ECIL did not upload even a signed copy of its reply on the RTI Online Portal," Nayak said.

He said it is reasonable to infer that the two companies are not manufacturing every single item of the EVM-VVPAT combo or else the two companies would have replied that they are manufacturing all these components internally without any outsourcing being involved.

"But the electorate is expected to take everything about the voting machines based on what the ECI is claiming in its manuals and FAQs," Nayak said.

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