Security Screen For Fdi Likely

The government is planning to insert a security filter for all foreign investment applications. The need for a comprehensive mechanism of security clearance will be discussed by the Cabinet on Wednesday along with proposals to increase the foreign direct investment (FDI) ceilings in petroleum, telecommunications, aviation and scientific and technical journals.

The group of ministers on foreign investment headed by Finance Minister Jaswant Singh has proposed a separate and comprehensive mechanism for security clearances and for enforcing security requirements irrespective of the equity structure.

This would be in addition to sector-specific security norms to be notified by the Secretariat for Industrial Assistance under the commerce and industry ministry, government officials said.

 

All FDI proposals will thus be screened even if a company intends to pick up a stake in an Indian venture which is below the prescribed limit in the particular sector.

The group of ministers