FDI guidelines on Feb 16: Nath

The government will issue detailed guidelines on the changed Foreign Direct Investment (FDI) policy on February 16, Commerce and Industry Minister Kamal Nath said today.

On February 11, the government had changed FDI policy excluding indirect investment through domestic company from overall sectoral ceilings.

"Detailed FDI guidelines will be issued on February 16," Nath said at the sidelines of Ficci annual general meeting here.

The Cabinet Committee on Economic Affairs had approved the changes in the guidelines for calculation of the total foreign investment, direct and indirect in the Indian companies.

Left parties have expressed apprehensions that excluding indirect foreign investment in sectors with caps could lead to FDI crossing the ceilings.

However, Nath had yesterday said the changes in FDI policy would not allow the back-door entry for foreign investment into retail sector and circumvention of the sectoral caps.

India does not allow FDI in multi-brand retail, but permits up to 51 per cent in single brand retail and 100 per cent in cash-and-carry wholesale trading.