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| FDI in cigarettes for domestic sale may be banned |
| Press Trust of India / New Delhi Feb 17, 2009, 16:04 IST |
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The commerce ministry is considering a proposal to ban foreign direct investment in the manufacture of cigarettes for sale in the country, the Lok Sabha was informed today.
"A proposal to prohibit FDI in the manufacture of cigarettes, where it is manufactured for domestic consumption, has, accordingly, been initiated by the Department of Industrial Policy and Promotion and is under consideration of the government," Minister of State for Commerce and Industry Ashwini Kumar said in a written reply.
Kumar said as per the extant policy, FDI up to 100 per cent is allowed, with prior government approval, in the manufacture of tobacco-based cigars and cigarettes, subject to industrial licence and conditions.
An industrial licence is required under the Industries (Development and Regulation) Act, 1951.
Pending the policy review, the government had deferred the proposal from the Japan Tobacco International Ltd, makers of popular Camel and Winston cigarette brands, to raise its stake in its Indian arm.
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