NEW DELHI: The Union Cabinet is likely to take a call on Wednesday on winding up of the 25-year-old Foreign Investment Prom
Finance Minister Arun Jaitley in his Budget speech on February 1 announced scrapping of the inter-ministerial body, which comes under the finance ministry’s Department of Economic Affairs. A suitable mechanism may also be proposed by the Cabinet tomorrow to deal with foreign direct investment in sensitive sectors, sources said.
As per the proposed mechanism, respective ministries would take care of the FDI proposals going forward. Sources added that the government is considering to come up with a standard operating procedure for clearance of FDI proposals in these 11 sectors. There could also be a provision for quarterly review of pending proposals by the economic affairs secretary and annual review by the finance minister.