DPIIT notifies FDI relaxation norms

NEW DELHI: The Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday notified the recent decisions to relax foreign direct investment (FDI) norms in sectors such as coal mining, contract manufacturing, and single-brand retail trading.

The DPIIT, under the commerce and industry ministry, deals with Fdi-related issues. It notifies Fdi-related government decisions through Press Notes.

The department has also notified the decision to allow 26 per cent FDI in digital media, a move over which certain industry and experts have raised issues.

On August 28, the government allowed 100 per cent foreign investment in coal mining and contract manufacturing, eased sourcing norms for singlebrand retailers and approved 26 per cent foreign investment in digital media.

According to the Press Note of the department, 100 per cent FDI is permitted for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957. Amending FDI norms for the manufacturing sector, it said foreign investment in 'manufacturing' sector is under automatic route.

For single brand retail trading, it retail trading through e-commerce can also be undertaken prior to opening of brick and mortar stores, subject to the condition that the company opens brick and mortar stores within two years from date of start of online retail.