FDI in beekeeping, share-pledge for ECBs allowed

The government today further liberalised FDI regime, allowing overseas investment in beekeeping and share-pleding for raising external debt.

The conditions for foreign direct investment (FDI) in respect of construction of old-age homes and educational institutions are eased. These will not be subject to minimum and and built-up area, capitalisation and lock-in period norms as applicable for the construction activities.

Hike in FDI cap in FM radio from 20% to 26%, as approved by the Cabinet in July, has been notified.

For giving a boost to bio-technology, pharmaceutical and life sciences, research and development in these sectors would be covered under the 'industrial parks' scheme, where 100% FDI is permitted under automatic route.

Widening options for raising overseas resources, "the policy has been amended to provide for pledge of shares of an Indian company which has raised ECBs...," the circular said.

The policy provides for opening and maintaining, without RBI approval, non-interest bearing rupee Escrow accounts by non-residents towards payment of share purchase consideration. This has been done "to facilitate FDI..," it said.

Procedure for conversion of imported capital goods and machinery and pre-operative expenses into equity has also been made easier.

About opening honey beekeeping to FDI, it said the "liberalisation will bring in international best practices to upgrade the product". The measure will help food firms, engaged in honey-processing.

India received FDI inflows of $14.54 billion during April-July this fiscal, showing a jump of 92% despite global economic uncertainties. For 2010-11, FDI inflows were $19.4 billion against $25.9 billion.