The railway ministry has expressed its willingness to be included in a list of “sensitive” sectors that can receive foreign direct investment (FDI) after a closer look at security concerns.
The sensitive list already includes sectors like power, roads and aviation. The railways and many other ministries have sent their suggestions on FDI, which will be discussed at a meeting of the Committee of Secretaries (CoS) next week. It would discuss sweeping changes in the policy, taking cognizance of security concerns in the country.
In a suggestion to CoS, which is reviewing FDI in sensitive sectors, the railway ministry has said that major railway installations, which includes sub-urban systems and strategic lines, should be included in sensitive locations.
On FDI in aviation, the Ministry of Commerce and Department of Industrial Policy and Promotion have suggested that the Reserve Bank of India (RBI) should inform the security agency on intimation of the first transaction of foreign money.
In case of greenfield airport projects, which are under the automatic route, the cases can be scrutinised as soon as the intimation of first transaction of inward remittance is received by RBI, which will inform the designated security agency.
Another alternative is to send all the data to Dipp, which can inform the designated security agencies.
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Also, while the home ministry has raised issues on FDI in petroleum and natural gas sector, the petroleum ministry wants itself to be removed from the sensitive list on the ground that there is an elaborate involvement of home and defence ministries in screening the equipment and foreign personnel at sensitive sites where drilling is going on.
Also, investment coming into the sector due to the huge amount and long gestation periods does not pose any threat to the country’s financial sector.
FDI in the petroleum and natural gas sector is capped at 49 per cent for refining in case of public sector undertakings and 100 per cent in case of private companies, as well as 100 per cent in sectors other than refining, which include setting up infrastructure, marketing and market study and formulation.
The Department of Space has suggested that no FDI should be permitted in the sensitive areas of satellite, data reception, processing and dissemination in the country.