Government of India
Ministry of Industry
Department of Industrial Policy & Promotion
SIA (FC Division)

PRESS RELEASE

New Delhi, dated 16th August 1999
 

In pursuance of the announcement in the Union Budget Speech for 1999 - 2000, the Government has decided to set up with immediate effect the Foreign Investment Implementation Authority (FIIA) in the Ministry of Industry. The FIIA will facilitate quick translation of Foreign Direct Investment (FDI) approvals and implementations, provide a pro-active one stop after care service to foreign investors by helping them obtain necessary approvals, sort out operational problems and meet with various Govt. Agencies to find solutions to problems and maximising opportunities through a partnership approach.

2. Role

The FIIA shall take steps to :

  • understand and address concerns of investors;

  • understand and address concerns of approving authorities;

  • initiate multi agency consultations; and

  • refer matters not resolved at the FIIA level to higher levels on a quarterly basis, including cases of projects slippage on account of implementation bottlenecks.

3. Functions

The functions of the FIIA shall be as under :

  • expediting various approvals / permissions;

  • fostering partnership between investors and government agencies concerned;

  • resolve difference in perceptions;

  • enhance overall credibility;

  • review policy framework; and

  • liaise with the Ministry of External Affairs for keeping India=s diplomatic missions abroad informed about translation of FDI approvals into actual investment and implementation.

4. The modalities of functioning of FIIA shall be as under :

(i) The FIIA shall set up a Fast Track Committee (FTC) to review and monitor mega projects. It will nominate members of the FTC from representatives of various Ministries / agencies / State Government at the working level. The representative of the AM concerned shall act as the project coordinator and shall head the FTC. The FTC shall prescribe the time frame within which various approvals / permissions are to be given on a project to project basis. FTC shall also flag issues that need to be resolved by FIIA. Based on the inputs provided by FTC, the FIIA will give its recommendations on each project on the basis of which Administrative Ministries / State Government shall take action under their own laws and regulations.

(ii) The FIIA will initiate inter Ministerial consultations and make appropriate recommendations to the competent authority, ie. Ministry / Department concerned at the Central Government level and the State Government , as the case may be, on issues requiring policy intervention.

(iii) The FIIA will act as a single point interface between the investor and Government agencies including Administrative Ministries / State Governments / Pollution Control Board / DGFT / Regulatory Authorities / Tax Authorities / Company Law Board, etc.

(iv) The FIIA shall meet once every month to review cases involving investment of Rs. 100 crore or more, consider references received from the FTC, and monitor the functioning of various FTCs. It would also entertain any complaint regarding implementation bottlenecks from FDI approval holders regardless of the quantum of investment.

(v) The FIIA shall also make recommendations from time to time on any issue relating to the speedy implementation of FDI projects and also to provide transparency in government functioning with respect to FDI projects.

5. Secretariat

The Secretariat for Industrial Assistance (SIA) in the in the Department of Industrial Policy & Promotion shall function as the Secretariat of the FIIA.

6. The resolution for setting up of FIIA has been published in the Gazette Extraordinary Part I, Section I on 9th August 1999.
 

(ASHOK KUMAR)
Joint Secretary to the Govt. Of India
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