Govt. revamps FDI policy — restricted entry allowed in retail
New Delhi: In a major step, the Government has cleared a comprehensive package of measures to make foreign direct investment easier and simpler in several key areas including retail, power trading, processing and warehousing of rubber and coffee, diamond and coal mining, airports and petroleum infrastructure.

The retail sector has been opened up for the first time, with a decision to allow 51 per cent FDI but with the stipulation that this will only be for single brand shops. Single brands can now open their own retail outlets instead of going through the franchisee or agent route as is being done now.

In addition, the Cabinet has decided to do away with multiple layers of approval needed by foreign investors. The need for approval by the Foreign Investment Promotion Board (FIPB) has been eliminated for airports, petroleum infrastructure and financing, wholesale and export trading as well as diamond mining. The FDI cap in all these areas has also been raised to 100 per cent.

Briefing the media on the decisions taken by the cabinet at a meeting here on Tuesday, commerce and industry minister Kamal Nath said, "For the first time in 15 years the whole FDI policy has been reviewed in an integrated manner to remove anomalies and inconsistencies."

Significantly, these wide-ranging measures to attract FDI have been taken in the backdrop of the annual World Economic Forum conference at Davos in Switzerland.
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PM to lay foundation stone for container terminal at Vizhinjam
Thiruvananthapuram: Prime minister Manmohan Singh, will lay the foundation stone for the Rs4360 crore Vizhinjam International Deep sea Container Transhipment Terminal here on February 3.

The work of the first phase of the project with a capacity to handle about one-lakh TEU (Twenty feet equivalent unit) containers per year would begin in next six months time, state minister for co-operation and ports M V Raghavan, told reporters.

The project is envisaged to handle 4.1 million TEU on its completion. Out of the total project cost, the first phase would have an outlay of Rs1850 crores, second phase Rs990 crore and Rs1520 crore in third phase.

The first phase was expected to be completed within three years of commencement of the work.
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