The Union Cabinet today finalised the auto policy after making some suggestions for redrafting the bill. It also approved a proposal to allow 100 per cent foreign investment through the automatic route in the advertising, film and broadcasting sectors.
Briefing mediapersons after the meeting, the official spokesperson said that the bill, that seeks to promote self-sustained growth of the auto industry would now be introduced in Parliament.
The Cabinet also approved the signing of the Stockholm Cnvention on Persistent Organic Pollutants (PoPs). The signing of the convention would enable India to participate in the first ever global effort on the adverse impact of organic pollutants.
The Cabinet also gave its ex-post facto approval for signing the extradition treaty with the governments of Mongolia and Turkey. It approved the memorandum of understanding between India and the US for cooperation in the field of environmental protection.
It also approved the proposal that shopkeepers in 10 markets of Delhi would be charged ground rent at 2.5 per cent of the concessional premium charged from them and not on 100 per cent premium on land. An approval was also granted to a policy to promote Indian education abroad. Accordingly a committee would be constituted for the purpose. An International Education Cell would be set up for designating registering authorities.
Though the spokesperson declined to give details of the long awaited policy, sources said the auto policy, providing for 100 per cent FDI through automatic approval route, stipulated a minimum capitalisation of $ 100 million incase of four wheelers and $25 million for two and three wheelers.
The policy, formulated in conformity with the commitments made by India under the WTO, also provided that companies wishing to undertake investments in india could pick up equity either entirely in the auto segment or jointly in the auto and component segments, sources said.
The policy also includes major incentives for research and development including an increase in the weighted tax deduction under the Income Tax Act for in-house R & D and sponsored research.
