The Department of Industrial Policy and Promotion vide press release on June 29, 2017 has issued SOPs for processing FDI proposals. The SOP has hilighted the Application Procedure, Approval, Time Limit for processing FDI proposals:

Online Filing of Application

  • Proposals requiring Government approval as per the FDI Policy of 2016, as amended from time to time, shall now be filed online on the revamped Foreign Investment Facilitation Portal (“FIPB”). Format and List of Documents (as per Annexure 1 of SOPs) to be filed along with.
  • DIPP shall identify the concerned Administrative Ministry/ Department (“Competent Authority”) to which the proposals are to be e-transferred within 2 days. In case a physical signed copy of a proposal is required, the time limit for disposal of application shall be calculated from the date of filing of physical application, unless submitted to the Competent Authority within 7 days from receiving the intimation of the requirement of the same.

Procedure for Processing of Applications Seeking Approval for Foreign Investment for a simpler and expeditious disposal

  • Upon receiving the proposal, DIPP shall circulate the same to RBI, Ministry of External Affairs, and Department of Revenue.
  • Should a proposal require clarification in FDI Policy, the same shall be referred to DIPP for resolution within 15 days of referral.
  • Consultation with any other Ministry/ Department will require full justification and approval of the concerned Secretary.
  • Within 1 week of scrutinizing the application with additional comments, the Competent Authority shall raise queries or ask for additional documents from the applicant. Time taken by applicant to address the same to be excluded from time limit for disposal of application.
  • Once the proposal is complete, the same shall be communicated online to the applicant, and the consulted Ministries/ Departments by the Competent Authority within two weeks.
  • Should a proposal involve a total foreign equity flow of more than Rs. 5000 crores, the Competent Authority will place the same for consideration before the Cabinet Committee on Economic Affairs within the timelines specified, with the decision to be communicated 1 week from such consideration concluding.
  • Proposals which are sought to be rejected, or proposals stipulating additional conditions, shall require concurrence of DIPP by the Competent Authority within 8 – 10 weeks (should Ministry of Home Affairs be consulted) from receipt of proposal.

Time Limits

  • The SOPs list the time limits for the various action points involved in processing an application for FDI approval. Further, it has been stated that an additional time of 2 weeks will be given for proposals considered for rejection or bearing conditions not provided in the FDI Policy