The industry department has fixed July 1 as the timeline to implement the standard operating procedure (SOP) for clearing foreign investment proposals, a senior government official said today.
The draft SOP was discussed today with other departments, including revenue and economic affairs.
"We have received views of different ministries. We have issued the draft. Our target is to implement it from July 1," Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek told reporters here.
The SOP is being finalised after the abolition of Foreign Investment Promotion Board (FIPB), which was clearing FDI proposals earlier.
The meeting was chaired by the DIPP Secretary. Around 40 officials from ministries such as home affairs, finance, science and technology, defence and information and broadcasting attended the meeting.
As per the draft SOP, the existing FIPB portal will be revamped for online filing of foreign investment proposals. The portal will be named as Foreign Investment Facilitation Portal (FIFP).
The DIPP would then transfer the proposal online to a ministry or department concerned within two days of filing.
Time limits have been fixed for every stage of clearance. FDI proposals which do not require security approval would be cleared in eight weeks, while those needing clearance would be approved in 10 weeks.
Additional two weeks time would be given to the DIPP for applications that are proposed for rejection.
Proposals which require security clearances from the Home Ministry include investments in telecommunication, satellites, broadcasting and security agencies.
FDI applications from Pakistan and Bangladesh would also need Home Ministry's nod besides investments in north-eastern region and Jammu and Kashmir.
Foreign investment proposals will be sent to the respective ministries or departments for the approval process. For example, applications of print media would be cleared by information and broadcasting ministry, while proposals of satellites will be approved by Department of Space.
Consultation with any other ministry on an application will require full justification and approval of the secretary concerned.
If a ministry wants to reject a proposal, it has take concurrence of the DIPP within six to eight weeks.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)