Financial Daily from THE HINDU group of publications
Wednesday, Mar 06, 2002
Industry & Economy - Automobiles
Government - Policy
Auto policy may set norms for fresh investments
NEW DELHI, March 5
THE Cabinet today finalised the auto policy with some changes and the new draft would be tabled in Parliament soon.
According to Government officials, the aim of the policy is to promote self-sustained growth of the industry.
The policy, which the Government has been contemplating and working on for the last two years or so, is expected to set norms for new investments in the sector.
Industry Ministry sources had earlier said that the policy was likely to prescribe a $100-million minimum investment by any foreign company wishing to set up a production facility for the four-wheeler market in India.
A minimum investment norm of about $25 million is expected to be laid for investments to start any two-wheeler, three-wheeler operations in the country.
The Cabinet also permitted 100 per cent foreign direct investment on the automatic route in the advertising and film sector.
So far only 74 per cent FDI was permitted in the advertising sector. According to industry analysts, permitting 100 per cent FDI in advertising would not have a great impact on the sector as most of the advertising agencies already have high foreign ownership.
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