The finance ministry has given its nod to four Foreign Direct Investment (FDI) proposals, worth Rs 503.40 crore in the previous two months. The proposals approved, include AMP Solar India that alone will bring investment of Rs 500 crore. One proposal of CVC Asia of entailing investment of Rs 3.32 crore got approval. CVC Asia plans to set up an investment advisory entity exempt from registration with capital market regulator SEBI. Besides, proposals of Aditya Birla Capital and Firstspace Development Management were also cleared by the department.
Inflow of FDI into India increased by 9 percent to record level of $43.48 billion in 2016-17 on account of reform measures undertaken by the government. In May this year, the Union Cabinet decided to abolish the Foreign Investment Promotion Board (FIPB) -- an advisory body comprising of secretaries to various departments for vetting of FDI applications and making recommendations to the government.
The government officially abolished the FIPB in June. It was decided that the approvals would be handled independently by administrative ministries of different sectors. The FIPB was set up after India embarked on its first market reforms in 1991. It was initially constituted under the Prime Minister's Office and subsequently shifted under the Department of Economic Affairs in the Ministry of Finance.
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