Foreign Direct Investments (FDI)

Chief General Manager
Reserve Bank of India,
Foreign Investment and Technology Transfer Division,
Exchange Control Department,
Shaheed Bhagat Singh Road,
Mumbai – 400001
Tel :+ 91-22-2266 1603
Fax:+ 91-22-2266 5330

Procedure for Government Approval –:
FDI not covered under the “ Automatic Route ” requires prior Government approval.

All proposals for foreign investment requiring Government approval are considered by Foreign Investment Promotion Board (FIPB). The FIPB also grants composite approvals involving foreign investment/ foreign technical collaboration. For seeking approval for FDI, other than NRI Investment and 100% EOUs, application in form FC-IL or plain paper application carrying all relevant details are to be submitted to FIPB in Department of Economic Affairs, Ministry of Finance, Government of India, North Block, New Delhi- 110 001. No fee is payable.

Application can also be submitted to the Indian mission abroad who will forward them to the Department of Economic Affairs (DEA) for further processing

Foreign investment proposal received in DEA are generally placed before the FIPB within 15 days of date of receipt and the decision of Government in all the cases is usually conveyed within 30 days.

FDI application with NRI investment & 100% EOUs should be submitted to the public relation complaint section of Secretariat of industrial Assistance (SIA), Department of Industrial Policy & Promotion.

Secretariat for Industrial Assistance (SIA) in Department of Industrial Policy and Promotion, Government of India provides a single window service for entrepreneurial assistance, Investor facilitation and monitoring implementation of the projects.

India is moving towards reforming its tax policies and systems so as to facilitate globalization of economic activities. The corporate tax rate for foreign companies is 40%. The net tax rate is far lower than this on account of various deductions and exemptions available under the tax laws.

For details regarding taxes in India, please contact Ministry of Finance, Government of India, North Block, New Delhi – 110 001 through their website http://finmin.nic.in/topics/taxation/index.html

Useful addresses for the Foreign Investors-:

Department of Industrial Policy and Promotion
Joint Secretary
Secretariat for Industrial Assistance (SIA)
Ministry of Commerce & Industry
Udyog Bhavan, New Delhi-110 011INDIA
Tel: +91-11-23011983
Fax: +91-11-23011034
E-mail: sia_dipp@ub.nic.in Web site: www.dipp.nic.in

Reserve Bank of India (RBI)
Foreign Investment Division
Shaheed Bhagat Singh Road
Mumbai-400 001
INDIA
Tel: + 91-22-2266 1603
Fax: + 91-22-2266 5330
Web site: www:rbi.org.in

Registrar of Companies
Department of Company Affairs & Ministry of Finance
‘B' Block, IInd Floor, Paryavaran Bhawan
C.G.O. Complex,
New Delhi-110 003
INDIA
Tel: +91-11-24362708
Web site: www.dca.nic.in

Mega projects have been categorised as:

New Industrial Units primarily based on iron, bauxite ore and chromite with capital investment of Rs.300 crore and above
New Industrial Units primarily based on minerals other than iron, bauxite ores, chromite and gem stones with capital investment of Rs.100 crore and above
Non mineral based new industrial units with capital investments of Rs.25 crore and above
New Industrial units for gem stone processing, jewelry, handlooms, handicrafts and Bio Technology with capital investment of Rs.10 crore and above

Mega projects of all categories shall be entitled for the following incentives –

Exemption from entry tax on goods imported through ports in Orissa from foreign countries for processing, for sale and distribution in Orissa

CST at a concessional rate not exceeding 2% for 15 years. Mega projects categorised (3rd) and (4th) above are eligible for Special Industrial Promotion Assistance. SIPA equal to 50% of Sales Tax / VAT paid for a period of 10 years subject to a total maximum limit of 100% of the original fixed capital investment.

Large Projects-:

The state of Orissa is committed to industrial development. The stress of the government is on leveraging the rich agricultural, marine and mineral resources to accelerate industrialization. There already exists a substantial industrial base, comprising a number of large and medium sized enterprises in steel, aluminium, oil refining, fertilisers, power and a host of other sectors.

Some of the major industries in the state are:

Sl. No	Name of the Company	Sector
1	Rourkela Steel Plant (Owned by Steel Authority of India Ltd)	Steel
2	Neelachal Ispat Nigam Ltd	Steel
3	Jindal stainless	Steel
4	Tata Sponge Iron Ltd	Sponge Iron
5	Orissa Sponge Iron Ltd	Sponge Iron
6	Infosys Technologies Ltd	Information Technology
7	Satyam Computers Ltd	Information Technology
8	Ballarpur Industries Ltd	Paper
9	J.K. Corporation	paper
10	Emami Paper Mills Ltd	Paper
11	Sakthi Sugars Ltd	Agro
12	BCL of ACC	Fertilisers
13	NALCO	Aluminium
14	Paradeep Phosphates Ltd	Fertiliser
15	Indian Farmers and Fertilizers Corporation Ltd	Fertiliser
16	Mahanadi Coal Fields Ltd	Mining
17	Birla Tyres	Automobile tyres

Small & Medium Projects-:

Small scale industries provide employment to a large number of persons across the state. The development of small scale industries has been given priority in successive industrial policies of the state – adopted from time to time. In the current organizational and structural set up, the District Industries Centres (DICs) operate as nodal agencies for development of small scale industries and for recommending grants under various incentives.

Assistance under various schemes like National Equity fund (NEF), Credit Linked Capital Subsidy Scheme (CLCSS), Small Industries Cluster Development Programme (SICDP), Prime Minister's Rozgar Yojana (PMRY) etc. announced by the government of India are also available for this sector.

37,407 SSI units have been set up in the state of Orissa with an investment of Rs.1257.70 crore in the year 2005-06 – providing employment opportunities to 298,643 persons.

Sl. No.	Category	Number	Investment (Rs. in Crore)	Employment
1	Food & Allied	8,876	267	59,934
2	Chemical & Allied	1,780	95	16,249
3	Electrical & Electronics	714	33	5,293
4	Engineering & Metal Based	6,986	306	58,503
5	Forest & Wood Based	1,771	14	12,549
6	Glass & Ceramics	3,267	124	60,721
7	Live stock & Leather	196	7	1,191
8	Paper & Paper products	1,791	98	10,159
9	Rubber & Plastics	1,599	66	12,613
10	Textiles	3,217	72	26,232
11	Misc. Manufacturing	889	19	5,828
12	Repairing & Servicing	6,321	156	29,371
	Total	37,407	1257	298,643