Abolishing of FIPB approved by Union Cabinet

Union Cabinet has approved the abolition of the 25-year-old Foreign Investment Promotion Board.

The Union Cabinet on Wedneaday has approved to abolishing of Foreign Investment Proposal Board or the FIPB. Finance Minister Arun Jaitley in his Budget speech on February 1 had announced the scrapping of the inter- ministerial body, which comes under the ministry's Department of Economic Affairs.

It may be recalled that the Arun Jaitley in his budget had said that keeping in mind to make India an easier place to do business, reforms for foreign direct investment would include abolishing the FIPB, which is a part of the Finance Ministry.

The FIPB has five senior bureaucrats. The role of the FIPB is to consider foreign direct investments up to Rs 600 crore. Amounts larger than this need to be sanctioned by the cabinet committee.

Companies seeking approval may be asked to apply online through a new website that would direct their applications to the relevant ministry once FIBP is abolished. The Finance Minister had said a road map would be announced in the next few months for how applications for foreign investment would be handled.

OneIndia News