Uncertainty over EC approval to easing FDI rules in Rlys, construction
The Commerce and Industry Ministry has doubt regarding its proposal for easing FDI rules in railways and construction development sectors will get approval from the Election Commission.
There are apprehensions that it may not be possible to attach the EC guidelines of not publicizing a decision taken by the Government while the model code of conduct is in place in case the Cabinet approves the two FDI proposals.
A government official says that the decisions on the change in FDI rules are such that these compulsorily involve publicizing.
The Ministry is not sure whether the EC will give approval to the cabinet to take up the two issues less than a month before the general elections are scheduled to kick-off. The model code of conduct is applicable from March 5 as voting begins on April 7.
An official says that they are hoping for the best on the issue of getting approval from the EC. EC will give its decision soon.
The EC at present is analyzing a number of items that are awaiting Cabinet clearance that include the proposals for liberalizing FDI in the two sectors. The EC has asked the DIPP to explain the policies on the railways in which 100 percent FDI is proposed. The DIPP has its hopes attached on the proposal for the railways as it is sanctioned by all the departments and Ministries after concerns posed by the Ministry of Home Affairs and Department of Economic Affairs (DEA).
The process is expected to be difficult as the construction development sector is finding it difficult to relax the guidelines on changing land-use norms, as the Urban Development Ministry wants the new rules to apply with retrospective effect and the DIPP firm about its prospective implementation.
Source: The business Line
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