Published by the Press, Information & Culture Wing, Embassy of India

In this Issue
(January 16-31 1999)

South Asia Region

India's Foreign Relations

Economy & Trade

Upcoming Events

Opinion

Feature: Christianity in India

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RAJYA SABHA PASSES PATENTS AMENDMENT BILL

Rajya Sabha, the upper house of Parliament has passed the patents (amendment) bill with 83 members voting for and 43 against after rejecting about 40 amendments, including one for referring the bill to a parliamentary select committee. Industry Minister Sikander Bakht, who moved the bill and replied to the discussion, said that provisions had been built into the measure to protect national interest. The bill mainly provides for exclusive marketing rights for five years to international agro-chemical and pharmaceutical firms.

100 % FOREIGN EQUITY IN AIRPORTS

Prime Minister Vajpayee has said the government had decided to permit 100 % foreign equity participation for development of new airports in the country and evolve a new set of regulatory guidelines to expedite clearance of projects. The infrastructure task force set up by the government had made important recommendations in its interim report which included framing of regulatory norms for speedy clearance of new airport projects, he said. At present, clearance has to be obtained from several agencies, resulting in delay in clearing the future proposals.

INSURANCE REGULATORY AUTHORITY BILL TABLED IN PARLIAMENT

The government has tabled the bill to open up the insurance sector to foreign equity in the Lok Sabha, the Lower House of Parliament. Finance Minister Yashwant Sinha introduced the Insurance Regulatory Authority (IRA). Lok Sabha Speaker Balayogi simultaneously referred the bill to a joint committee of parliament for scrutiny.

MEGA POWER POLICY SOPS FOR EXISTING PROJECTS

The government may offer concessions accorded to mega power projects to some existing projects not having escrow facilities, provided their tariffs are in tune with the recently announced mega power policy, Power Minister P R Kumarmangalam has said. "We will look at the existing large independent power projects without escrow support from state governments and consider offering them mega project status, if they would present tariffs close to the one that will be calculated under the new policy in March," the minister said.

FOREIGN INVESTMENT POLICY IN THE PORTS AND ROAD SECTORS

The Government has reviewed the existing guidelines for automatic approval for foreign equity for construction and maintenance of roads, highways, vehicular bridges, toll roads, vehicular tunnels, ports and harbors and has decided to enlarge the provisions for automatic approval for such projects. Accordingly, the Government has decided to permit foreign equity participation upto 100% on the automatic approval route provided the total foreign equity in any such project does not exceed Rs. 1500 crore (around US $360 million).

AUTOMATIC APPROVAL FOR 100 PER CENT FOREIGN EQUITY IN INFRASTRUCTURE

The government has decided to give automatic approval for 100 % foreign participation in the infrastructure sector, specifically for construction and maintenance of roads and ports. In the revised guidelines for automatic approval of projects, it however stipulated that the total foreign equity participation for any project should not exceed Rs. 15 billion. Earlier, Indian companies undertaking construction and maintenance of roads, highways, vehicular bridges, toll roads, vehicular tunnels, ports and harbors were eligible for automatic approval of upto 74 per cent foreign participation. Entrepreneurs would have to give a description of their activities under the specified classification while approaching the Reserve Bank of India, The government's move to revise guidelines for investment in infrastructure is part of its effort to attract increased foreign investment in the crucial infrastructure sector.