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January 29, 2002

'17'

MARAN TO LEAD INVESTMENT PROMOTION DELEGATION TO ITALY AND NETHERLANDS

SIX-POINT STRATEGY TO SPEED UP FDI IMPLEMENTATION

MARAN CHAIRS FIIA MEETING WITH ITALIAN, DUTCH INVESTORS

Shri Murasoli Maran, Union Minister for Commerce and Industry, will be leading an investment promotion delegation to Italy and the Netherlands from 11^th to 15^th February 2002. Chairing separate interactive sessions of the Foreign Investment Implementation Authority (FIIA) with investors from Italy and the Netherlands here last evening, Shri Maran indicated that his delegation would comprise a strong business contingent including CEOs of large private sector companies with technical and financial collaborations and other interests in these countries. During the visit, the Minister will have interactions with Italian and Dutch business representatives with the objective of improving investment inflows as well as technological collaborations between India and Italy and the Netherlands. The interactive session, organised as a prelude to the Minister’s visit, was aimed at getting feedback from the investors and to learn from them first hand about problems and difficulties they may be facing in the implementation of their projects in India. Shri V. Govindarajan, Secretary (Industrial Policy & Promotion) also participated in the session along with other senior officials.

Underlining the role of the FIIA as a facilitating mechanism to resolve operational problems faced by foreign investors in the implementation of various FDI mega projects, Shri Maran said that the government had already announced a six-point strategy for a sharper focus on FDI implementation through the FIIA. Some of the steps taken as part of the strategy are:

FIIA has addressed letters to approval holders of Mega Projects of FDI (those involving investments of over Rs.100 crore) asking them to inform FIIA if they are encountering difficulties in implementation and whether they would like FIIA to take up these matters with concerned agencies for resolution.
The Directors/Deputy Secretaries of the Department, who have been designated as Nodal Officers, have been given the express mandate of monitoring, to start with, FDI Mega projects and IEMs (those involving investments of over Rs.25 crore) with the concerned State Governments. Any issue hampering the implementation of projects is to be brought to the notice to FIIA for resolution.
Indian Missions abroad had earlier been authorised to receive FDI applications on behalf of FIPB. They have now been advised to monitor implementation of FDI approvals emanating from their region.
Apex Industrial Associations like CII, FICCI and ASSOCHAM have also been requested to follow up with approval holders of mega projects and to advise FIIA about any difficulty to be resolved.

While conveying the keenness of their respective industries to invest in India, the Italian and Dutch investors raised various issues of both a specific and general nature. They stressed in particular the need for further rationalisation of tariff levels and for greater transparency of procedures in order to accelerate FDI inflows into India. Shri Maran said that the interactive feedback sessions were a significant reflection of the promotional and investment facilitation measures that the government had been taking on an ongoing basis. He assured that the various points raised at today’s sessions would receive prompt attention of the government.