Business Daily from THE HINDU group of publications
Thursday, Jul 13, 2006
Business Daily from THE HINDU group of publications Thursday, Jul 13, 2006 |
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Agri-Biz & Commodities
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Foreign Direct Investment Government - Policy Govt clarifies on farm sector FDI Our Bureau
FDI up to 100 per cent with prior Government approval is permitted in tea plantations subject to 26% divestment.
New Delhi , July 12 Putting to rest any doubts on the existing FDI policy with regard to agriculture and plantation sector, the Government today clarified that FDI up to 100 per cent is permitted under the automatic route in certain activities of the sector. The activities include floriculture, horticulture, development of seeds, animal husbandry, pisciculture, aquaculture, cultivation of vegetables and mushrooms under controlled conditions, and services related to agro and allied sectors. In a statement, the Department of Industrial Policy and Promotion in the Ministry of Commerce and Industry said that FDI policy vide Press Note 4 (2006 series) dated February 10, 2006 was rationalised. It has now been brought to the notice of the Government that the policy on FDI in agriculture and real estate requires further clarification, the statement added. As regards tea plantation, the statement said that FDI up to 100 per cent with prior Government approval is permitted in this segment, subject to the conditions of divestment of 26 per cent equity of the company in favour of an Indian partner or the Indian public within a period of five years and prior approval of the State Government concerned in case of any future land use change. Besides the above two, FDI is not allowed in any other agricultural activity, the statement said. The Government further clarified that that apart from the permitted activities indicated in the Press Note 4 (2006), FDI is not permitted in any other activity in the real estate sector.
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