Govt plans to scrap royalty payments cap

 The cap on technical/know-how fees for the use of technology by Indian companies is also likely to be relaxed.

 The proposal is scheduled to be discussed by the core group of the FIPB at its next meeting, but the date has not yet been finalised.

 Currently, royalty payments to offshore parent companies are capped at eight per cent of exports and five per cent of domestic sales in the automatic route, irrespective of the nature of foreign shareholding in the company.

 In an internal note, the FIPB has argued that a cap on such payments doesn