Real Estate Update
January 30, 2004
100% FDI in Petroleum Sector Notified
The Ministry of Commerce and Industry (the "Ministry") has notified further relaxations in the Foreign Direct Investment ("FDI") policy vide Press Note No.1 (2004) dated 28th January 2004, which modifies the relevant provisions of Press Note No. 2 (2000). The Ministry has revised the sectoral guidelines and equity cap on FDI, including investment by Non-Resident Indians and Overseas Corporate Bodies. The relaxations are primarily aimed at the petroleum sector. The salient relaxations introduced are as follows:
The FDI policy governing the refining segment remains unchanged, with FDI upto 100% of the equity of private Indian companies being permitted under the automatic route and up to 26% in Public Sector Units subject to prior government approval.
Source: Ministry of Commerce and Industry
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