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Foreign Firms To Be Allowed 100% Units In Non-Core Areas

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Last Updated : Aug 22 1996 | 12:00 AM IST

If any such venture is employment-oriented, backwardly linked to agriculture sector, employment-generating, brings in new technology and promote exports, we should welcome it, Maran said.

He was talking to newsmen on the forthcoming two-day global summit on investment opportunities entitled Destination India.

However, Maran maintained that the government would consider foreign direct investment (FDI) proposals in the consumer sector on a case-by-case basis.

Federation of Indian Chambers of Commerce and Industry (Ficci) president Deepak Banker, who was present at the briefing, said the chamber welcomed foreign companies in the infrastructural sector and in the high-tech areas.

They are also welcome to make investment in such areas promoting value-addition and export as long as it does not hamper the interests of domestic companies, he said.

Banker cited the Pepsi project as an example and said the farmers had immensely benefited from the project.

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The industry minister indicated that the government would soon come out with guidelines for the foreign investment promotion board (FIPB) regarding the foreign direct investment (FDI) policy.

We are working on these guidelines and these would be circulated soon, Maran said. The government, Maran said, will soon take a policy decision on PSU revamp as well.

Denying that the United Front government supported total privatisation of PSUs, he said as per our common minimum programme (CMP), we have set up the disinvestment commission to play an advisory role as we need transparency in the entire disinvestment exercise, he said.

Funds raised from disinvestments would be utilised for social sectors like health and some funds would be earmarked for the infrastructural development of PSUs.

Asked why the government did not accord statutory status to the disinvestment commission, he said there was hardly any difference between statutory and non-statutory roles.

The commission would play an advisory role as envisaged in the CMP.

Maran maintained that the first and second tranches of disinvestment planned for the current financial year would be conducted as before.

The disinvestment commission would step in only during the third tranche, he said.

On the comprehensive test ban treaty (CTBT), Maran said India does not expect any kind of sanctions from the US for vetoing the draft text at the disarmament conference in Geneva.

We will cross the bridge as we come near it, he said when asked what would be the government's strategy if the US resorted to sanctions.

Investment meet on Sept 10

Destination India, a global summit on investment opportunities will begin here on September 10. The summit will try to attract foreign direct investment (FDI) in various sectors of the economy.

The two-day meet, to be inaugurated by Prime Minister H D Deve Gowda, will be attended by top executives of nearly 200 reputed foreign companies.

Six thrust areas

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First Published: Aug 22 1996 | 12:00 AM IST

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