Press Release

 

The first meeting of the Foreign Investment Implementation Authority (FIIA) was held for the Northern Region in New Delhi today (29th September, 1999) under the chairmanship of Secretary, Department of Industrial Policy and Promotion (Ministry of Industry)-cum-Chairman, FIIA. The State Governments/Union Territories of Chandigarh, Delhi, Himachal Pradesh, Haryana, Madhya Pradesh, Rajasthan, and Uttar Pradesh participated in the meeting. The Administrative Ministries at Central level were also present. The main thrust of the meeting was to place the States in the forefront of working towards attracting FDI into the country. Henceforth, the States would be completely involved both in events abroad as well as within the country. It was agreed that it was necessary to ensure face-to-face interaction between the foreign investors and the State level Government functionaries and private entrepreneurs. Through the mechanism of the FIIA the States are being brought on board in the quest for enhancing the actual inflow of FDI into India from the meagre average of US $ 3 - 3.5 billion per annum to US $ 10 billion per annum.
2.The FIIA took note of the fact that this forum would serve a common platform for the Central and State Governments to identify potential areas for investment and technology flows and attract investment not only on a sectoral basis but also on the basis of competitive strengths of individual States. It was noted that the States would have to enlarge their role in promoting investments right from investment marketing stage to the stage of project approval and post approval investment facilitation. In the days to come, the real potential of the State would be perceived by the foreign investors in terms of ability of each State to transform investment intentions and approvals into actual implementation with the least possible hindrance and irritants. With this objective in view, the FIIA resolved that the present gap between investment intentions, investment approvals, and inflows can be largely bridged by the concerted efforts of the Centre and the States through this forum. This would, inter alia, include focused investment marketing, grant of composite approvals, pro-active investor hand-holding, investor feed-back mechanism for addressing investment related problems through appropriate policy interventions and Centre-State coordination.

3.  The FIIA resolved that a Fast Track Committee (FTC) under each Administrative Ministry would be set up by the concerned Ministry, which would have representation of all Central agencies and State Governments concerned. FTC would meet at regular periodicity, and would review project implementation with respect to each FDI approval and sort out problems arising in the course of project implementation. The FTC would also provide a direct interface between the investors and the agencies concerned and would attempt to provide to each approval holder a check list of approvals along with the likely time frame within which all clearances at the Central and State level would be made available at the post RBI/FIPB stage. Thereafter, it would review deviations, if any, from the schedule in this check list. The FTC would, on the basis of such reviews, be also able to identify redundant procedures as also suggest simplification of procedures at the Central and State level, chart out a road map for sector-specific projects and identify impediments to project implementation, including remedies. The FIIA noted that some issues may remain unresolved and such issues would, therefore, be brought up to the FIIA for a resolution at the Central or State Government level.

4. The FIIA resolved that each project would be provided a tracking number which would be common for all post FDI approval stages such as, various registrations, and clearances.

5. The FIIA would monitor all approvals and receive complaints and suggestions from each approval holder as was done in today=s meeting in which responses to individual letters to investors on behalf of FIIA were received, reviewed, and referred to the concerned Central Government Ministry, and State Government agencies for time bound resolution.

6. FIIA resolved that the sector specific FTCs would meet at fixed intervals based on a pre-determined calendar, which would be given wide publicity so as to enable investors to put forth their problems before the Committee.

7. FIIA meetings to cover other Regions in the first round would be held on 30th September, 1999 for Western Region, 6th October, 1999 for Southern Region, and on 7th October, 1999 for Eastern Region.

( ASHOK KUMAR )

Joint Secretary to the Government of India

 

F.No.9(2)/99-FC.I                                                         dated 29th September, 1999