import of GPS Tracker into India

Dear Dinesh

On merit, there is no reason for CUstoms to withhold teh shipment, especially with the NOC from WPC. Despite, this customs is not allowing import of these devices without license from DGFT. That is a time consuming affair and takes a few moths. For the current shipment, you should try and visit the New CUstoms House and seek an appointment with the Assistance Commissioner Customs, and :

1) show him the WPC NOC

2) Plead that GPS Receiver is freely importable undger OGL (Open General List) as per item cide 8526.90

3) That GPS enbaled I-phones, and other mobile phoines do not need any license from DGFT, even though they are also combo of GPS/GPRS.

4) That it is a small value shipment and a first time import and if he decided that DGFT license is a must, then you undertake that next import will only be against such license, and for this shipment he may pardon, or levy minimal fine & penalty. For shipment of USD 820, fine and penalty can be upto the value of the shipment invoice, unless the officer wants to take a lenient view.

All the best

Luv Jain

Allowing FDI in Multi-Brand Retail Trading. (Press Note No.5 (2012 Series)

Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

(FC-I Section)

Press Note No.5 (2012 Series)

Subject: Review of the policy on Foreign Direct Investment- allowing FDI in Multi-Brand Retail

Trading.

1.0 Present Position:

Foreign Direct Investment (FDI) is prohibited in retail trading, except in single-brand product

retail trading, in which FDI, up to 100%, is permitted, under the Government route, subject to

specified conditions.

2.0 Revised Position:

The Government of India has reviewed the extant policy on FDI and decided to permit FDI,

up to 51%, under the Government route, in Multi-Brand Retail Trading, subject to specified

conditions.

3.0 Accordingly, the following amendment is made in 'Circular 1of 2012- Consolidated FDI

Policy', issued on 10.04.2012, by the Department ofIndustrial Policy & Promotion:

3.1 Paragraph 6.1 - 'Prohibited Sectors', is substituted with the following:

"6.1 PROHIBITED SECTORS:

FDI is prohibited in:

(a) Lottery Business, including Government /private lottery, online lotteries, etc.

(b) Gambling and Betting, including casinos etc.

(c) Chit funds

(d) Nidhi company

(e) Trading in Transferable Development Rights (TDRs)

(f) Real Estate Business or Construction of Farm Houses

(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco

substitutes

(h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway

Transport (other than Mass Rapid Transport Systems).

Foreign technology collaboration in any form, including licensing for franchise,

trademark, brand name, management contract, is also prohibited for Lottery Business and

Gambling and Betting activities."

Page 1 of4

3.2 A new paragraph as paragraph 6.2.16.5 is inserted below paragraph 6.2.16.4 as below:

6.2.16.5 Multi Brand Retail Trading I 51% I Government

(l) FDI in multi brand retail trading, in all products, will be permitted,

subject to the following conditions:

(i) Fresh agricultural produce, including fruits, vegetables, flowers,

grains, pulses, fresh poultry, fishery and meat products, may be

unbranded.

G) Minimum amount to be brought in, as FDI, by the foreign investor,

would be US $ 100 million.

(iii) At least 50% of total FDI brought in shall be invested in 'backend

infrastructure' within three years of the first tranche of FDI, where

'back-end infrastructure' will include capital expenditure on all

activities, excluding that on front-end units; for instance, back-end

infrastructure will include investment made towards processing,

manufacturing, distribution, design improvement, quality control,

packaging, logistics, storage, ware-house, agriculture market produce

infrastructure etc. Expenditure on land cost and rentals, if any, will

not be counted for purposes of back end infrastructure.

(iv) At least 30% of the value of procurement of manufactured! processed

products purchased shall be sourced from Indian 'small industries'

which have a total investment in plant & machinery not exceeding US

$ .1.00 million. This valuation refers to the value at the time of

installation, without providing for depreciation. Further, if at any point

in time, this valuation is exceeded, the industry shall not qualify as a

'small industry' for this purpose. This procurement requirement would

have to be met, in the first instance, as an average of five years' total

value of the manufactured! processed products purchased, beginning

1st April of the year during which the first tranche of FDI is received.

Thereafter, it would have to be met on an annual basis.

(v) Self-certification by the company, to ensure compliance of the

conditions at serial nos. (ii), (iii) and (iv) above, which could be crosschecked, as and when required. Accordingly, the investors shall

maintain accounts, duly certified by statutory auditors.

(vi) Retail sales outlets may be set up only in cities with a population of

more than 10 lakh as per 2011 Census and may also cover an area of

10 kms around the municipal/urban agglomeration limits of such

cities; retail locations will be restricted to conforming areas as per the

Master/Zonal Plans of the concerned cities and provision will be made

for requisite facilities such as transport connectivity and parking; In

States/ Union Territories not having cities with population of more

than 10 lakh as per 2011 Census, retail sales outlets may be set up in

Page 2 of4

(vii) Government will have the first right to procurement of agricultural

products.

the cities of their choice, preferably the largest city and may also cover

an area of 10 kms around the municipal/urban agglomeration limits of

such cities. The locations of such outlets will be restricted to

conforming areas, as per the Master/Zonal Plans of the concerned

cities and provision will be made for requisite facilities such as

transport connectivity and parking.

(viii) The above policy is an enabling policy only and the State

GovernmentslUnion Territories would be free to take their own

decisions in regard to implementation of the policy. Therefore, retail

sales outlets may be set up in those StateslUnion Territories which

have agreed, or agree in future, to allow FDI in MBRT under this

policy. The list of StateslUnion Territories which have conveyed their

agreement is annexed. Such agreement, in future, to permit

establishment of retail outlets under this policy, would be conveyed to

the Government of India through the Department of Industrial Policy

& Promotion and additions would be made to the annexed list

accordingly. The establishment of the retail sales outlets will be in

compliance of applicable StatelUnion Territory laws/ regulations, such

as the Shops and Establishments Act etc.

(ix) Retail trading, in any form, by means of e-commerce, would not be

permissible, for companies with FDI, engaged in the activity of multibrand retail trading.

(x) Applications would be processed in the Department of Industrial Policy

& Promotion, to determine whether the proposed investment satisfies

the notified guidelines, before being considered by the FIPB for

Government approval.

4.0 The above decision will take immediate effect.

Joint Secretary to Govt of India

D/o IPP File No.: 5/12//201O-FC-I dated: 20th September, 2012

Copy forwarded to:

1. Press Information Officer, Press Information Bureau- for giving wide publicity to the above

Press Note.

2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press

Note on DIPP's website.

Page 3 of4

ANNEXURE

LIST OF STATES/ UNION TERRITORIES AS MENTIONED IN

PARAGRAPH 6.2.16.5(l)(viii)

1. Andhra Pradesh

2. Assam

3. Delhi

4. Haryana

5. Jammu & Kashmir

6. Maharashtra

7. Manipur

8. Rajasthan

9. Uttarakhand

10. Daman & Diu and Dadra and Nagar Haveli (Union Territories)

Page 4 of4

(Source: :http://dipp.nic.in/English/acts_rules/Press_Notes/pn5_2012.pdf)

FDI is prohibited in

FDI is prohibited in:

(a) Lottery Business, including Government /private lottery, online lotteries, etc.

(b) Gambling and Betting, including casinos etc.

(c) Chit funds

(d) Nidhi company

(e) Trading in Transferable Development Rights (TDRs)

(f) Real Estate Business or Construction of Farm Houses

(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco

substitutes

(h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway

Transport (other than Mass Rapid Transport Systems).

Foreign technology collaboration in any form, including licensing for franchise,

trademark, brand name, management contract, is also prohibited for Lottery Business and

Gambling and Betting activities."

Foreign Direct Investment in the Civil Aviation sector

Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No.6 (2012 Series)
Subject: Review of the policy on Foreign Direct Investment in the Civil Aviation sector
1.0 Present Position:
1.1 Paragraph 6.2.9.3 of 'Circular 1 of 20 12-Consolidated FDI Policy', effective from April 10,
2012, relating to air transport services, presently reads as below:
6.2.9.3 Air Transport Services
(a) Air Transport Services would include Domestic Scheduled Passenger Airlines;
Non-Scheduled Air Transport Services, helicopter and seaplane services.
(b) No foreign airlines would be allowed to participate directly or indirectly in the
equity of an Air Transport Undertaking engaged in operating Scheduled and
Non-Scheduled Air Transport Services except Cargo airlines.
(c) Foreign airlines are allowed to participate in the equity of companies operating
Cargo airlines, helicopter and seaplane services.
(l) Scheduled Air Transport Service/ 49%FDI Automatic
Domestic Scheduled Passenger (100% for NRIs)
Airline
(2) Non-Scheduled Air Transport 74% FDI Automatic up to 49%
Service (100% for NRls)
Government route
beyond 49% and up to
74%
(3)Helicopter services/seaplane 100% Automatic
services requmng DGCA
approval
2.0 Revised Position:
2.1 The Government of India has reviewed the position in this regard and decided to permit
foreign airlines also to invest, in the capital of Indian companies, operating scheduled and nonscheduled air transport services, up to the limit of 49% of their paid-up capital.
2.2 Such investment would be subject to the following conditions:
(i) It would be made under the Government approval route.
(ii) The 49% limit will subsume FDI and FII investment.
(iii)The investments so made would need to comply with the relevant regulations of SEBI, such
as the Issue of Capital and Disclosure Requirements (ICDR) Regulations/ Substantial
Acquisition of Shares and Takeovers (SAST) Regulations, as well as other applicable rules
and regulations.(iv)A Scheduled Operator's Permit can be granted only to a company:
a) that is registered and has its principal place of business within India
b) the Chairman and at least two-thirds of the Directors of which are citizens of India
and
c) the substantial ownership and effective control of which is vested in Indian nationals
(v) All foreign nationals likely to be associated with Indian scheduled and non-scheduled air
transport services, as a result of such investment shall be cleared from security view point
before deployment; and
(vi)All technical equipment that might be imported into India as a result of such investment shall
require clearance from the relevant authority in the Ministry of Civil Aviation.
2.3 The above revised policy is not applicable to Air India.
3.0 Amendment to paragraph 6.2.9.3:
3.1 Accordingly, paragraph 6.2.9.3 of 'Circular 1 of 2012-Consolidated FDI Policy', effective
from April 10,2012, is amended, as below:
6.2.9.3 Air Transport Services
(1) Scheduled Air Transport Service/ 49%FDI Automatic
Domestic Scheduled Passenger (100% for NRIs)
Airline
(2) Non-Scheduled Air Transport 74% FDI Automatic up to 49%
Service (l00% for NRIs)
Government route
beyond 49% and up to
74%
(3)Helicopter services/seaplane 100% Automatic
services requmng DGCA
approval
6.2.9.3.1 Other conditions:
(a) Air Transport Services would include Domestic Scheduled Passenger Airlines;
Non-Scheduled Air Transport Services, helicopter and seaplane services.
(b) Foreign airlines are allowed to participate in the equity of companies operating
Cargo airlines, helicopter and seaplane services, as per the limits and entry
routes mentioned above.
(c) Foreign airlines are also, henceforth, allowed to invest, in the capital of Indian
companies, operating scheduled and non-scheduled air transport services, up to
the limit of 49% of their paid-up capital. Such investment would be subject to
the following conditions:(i) It would be made under the Government approval route.
(ii) The 49% limit will subsume FDI and FII investment.
(iii) The investments so made would need to comply with the relevant
regulations of SEBI, such as the Issue of Capital and Disclosure
Requirements (ICDR) Regulations/ Substantial Acquisition of Shares
and Takeovers (SAST) Regulations, as well as other applicable rules
and regulations.
(iv) A Scheduled Operator's Permit can be granted only to a company:
a) that is registered and has its principal place of business within
India;
b) the Chairman and at least two-thirds of the Directors of which
are citizens of India; and
c) the substantial ownership and effective control of which is
vested in Indian nationals.
(v) All foreign nationals likely to be associated with Indian scheduled and
non-scheduled air transport services, as a result of such investment
shall be cleared from security view point before deployment; and
(vi) All technical equipment that might be imported into India as a result of
such investment shall require clearance from the relevant authority in
the Ministry of Civil Aviation.
Note: The FDI limits/entry routes, mentioned at paragraph 6.2.9.3 (1) and
6.2.9.3 (2) above, are applicable in the situation where there is no
investment by foreign airlines.
(d) The policy mentioned at (c) above is not applicable to M/s Air India Limited.
4.0 The above decision will take immediate effect.
Joint Secretary to the
D/o IPP File No.: No. S/12/2008-FC.! dated: 20thSeptember, 2012
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- for giving necessary publicity.
2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press
Note on DIPP's website.
( Source: http://dipp.nic.in/English/acts_rules/Press_Notes/pn6_2012.pdf)Foreign direct investment in Civil Aviation Sector

Policy on Foreign Investment (FI) in companies operating in the Broadcasting Sector

Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No.7 (2012 Series)
Subject: Review of the policy on Foreign Investment (FI) in companies operating III the
Broadcasting Sector
1.0 Present Position:
1.1 As per extant policy, the foreign investment (FI) limits, in companies operating in the
Broadcasting Sector, are set out in paragraph 6.2.7 of 'Circular 1 of 2012 - Consolidated FDI
Policy', issued by the Department of Industrial Policy and Promotion (DIPP), on 10.04.2012.
2.0 Revised Position:
2.1 The Government of India has reviewed the position in this regard and decided to amend the
foreign investment limits, in companies engaged in providing broadcasting carriage services, in the
manner indicated below, subject to such terms and conditions, as may be specified by the Ministry of
Information and Broadcasting from time to time:
(1) Teleports (setting up up-linking HUBsffeleports); Direct to Home (DTH); Cable
Networks (MSOs operating at National or State or District level and undertaking
upgradation of networks towards digitalization and addressability):
Increase in the foreign investment (FI) limit from 49% to 74%, subject to:
(a) Foreign investment up to 49% being permitted under the automatic route; and
(b) Foreign investment beyond 49% and up to 74% being permitted under the Government
route.
(2) Mobile TV:
Permitting foreign investment (FI) up to 74%, subject to:
(a) Foreign investment up to 49% being permitted under the automatic route; and
(b) Foreign investment beyond 49% and up to 74% being permitted under the Government
route.
2.2 The foreign investment (FI) limit, in companies engaged in the aforestated activities of the
I&B sector, shall include, in addition to FDI, investment by Foreign Institutional Investors (FIls),
Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository
Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by
foreign entities.
2.3 The terms and conditions relating to security and other conditions, will separately be
incorporated in the sectoral guidelines of each broadcasting carriage service, as specified in
paragraph 3.0 below.3.0 Accordingly, paragraph 6.2.7 under 'Circular 1 of 2012-Consolidated FDI Policy' IS
substituted with the following:
SI. No. Sector/Activity 0/0 of FDI Entry Route
Cap/Equity
6.2.7 Broadcasting
6.2.7.1 Broadcasting Carriage Services
6.2.7.1.1 (1) Teleports (setting up of up- 74% Automatic up to 49%
linking HUBs/Teleports);
(2) Direct to Home (DTH); Government route beyond 49%
(3) Cable Networks (Multi System and up to 74%
operators (MSOs) operating at
National or State or District
level and undertaking
upgradation of networks
towards digitalization and
addressability);
(4) Mobile TV;
(5) Headend-in-the Sky
Broadcasting Service (HITS)
6.2.7.1.2 Cable Networks (Other MSOs not 49% Automatic
undertaking upgradation of networks
towards digitalization and
addressability and Local Cable
Operators (LCOs»
6.2.7.2 Broadcasting Content Services
6.2.7.2.1 Terrestrial Broadcasting FM (FM 26% Government
Radio), subject to such terms and
conditions, as specified from time to
time, by Ministry of Information &
Broadcasting, for grant of permission
for setting up of FM Radio stations
6.2.7.2.2 Up-linking of 'News & Current 26% Government
Affairs' TV Channels
6.2.7.2.3 Up-linking of Non-'News & 100% Government
Current Affairs' TV Channels/
Down-linking of TV Channels
6.2.7.3
FDI for Up-linking/Down-linking TV Channels will be subject to compliance with the
relevant Up-linking/Down-linking Policy notified by the Ministry of Information &
Broadcasting from time to time.
6.2.7.4
Foreign investment (FI) in companies engaged in all the aforestated services will be
subject to relevant regulations and such terms and conditions, as may be specified
from time to time, by the Ministry of Information and Broadcasting.
6.2.7.5 The foreign investment (FI) limit in companies engaged in the aforestated activities
shall include, in addition to FDI, investment by Foreign Institutional Investors (FIls),
Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs),American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and
convertible preference shares held by foreign entities.
6.2.7.6
Foreign investment in the aforestated broadcasting carriage services will be subject to
the following security conditions/terms:
Mandatory Requirement for Key Executives of the Company
(i) The majority of Directors on the Board of the Company shall be Indian
Citizens.
(ii) The Chief Executive Officer (CEO), Chief Officer In-charge of technical
network operations and Chief Security Officer should be resident Indian
Citizens.
Security Clearance of Personnel
(iii) The Company, all Directors on the Board of Directors and such key executives
like Managing Director / Chief Executive Officer, Chief Financial Officer
(CFO), Chief Security Officer (CSO), Chief Technical Officer (CTO), Chief
Operating Officer (COO), shareholders who individually hold 10% or more
paid-up capital in the company and any other category, as may be specified by
the Ministry of Information and Broadcasting from time to time, shall require
to be security cleared.
In case of the appointment of Directors on the Board of the Company and such
key executives like Managing Director / Chief Executive Officer, Chief
Financial Officer (CFO), Chief Security Officer (CSO), Chief Technical
Officer (CTO), Chief Operating Officer (COO), etc., as may be specified by
the Ministry of Information and Broadcasting from time to time, prior
permission of the Ministry of Information and Broadcasting shall have to be
obtained.
It shall be obligatory on the part of the company to also take prior permission
from the Ministry of Information and Broadcasting before effecting any
change in the Board of Directors.
(iv) The Company shall be required to obtain security clearance of all foreign
personnel likely to be deployed for more that 60 days in a year by way of
appointment, contract, and consultancy or in any other capacity for installation,
maintenance, operation or any other services prior to their deployment. The
security clearance shall be required to be obtained every two years.
Permission vis-a-vis Security Clearance
(v) The permission shall be subject to permission holder/licensee remaining
security cleared throughout the currency of permission. In case the security
clearance is withdrawn the permission granted is liable to be terminated
forthwith.
(vi)
In the event of security clearance of any of the persons associated with the
permission holder/licensee or foreign personnel is denied or withdrawn for any
reasons whatsoever, the permission holder/licensee will ensure that theconcerned person resigns or his services terminated forthwith after receiving
such directives from the Government, failing which the permission/license
granted shall be revoked and the company shall be disqualified to hold any
such Permission/license in future for a period or five years.
Infrastructure/Network/Software related requirement
(vii) The officers/officials of the licensee companies dealing with the lawful
interception of Services will be resident India citizens.
(viii) Details of infrastructure/network diagram (technical details of the network)
could be provided, on a need basis only, to equipment suppliers/manufactures
and the affiliate of the licensee company. Clearance from the licensor would be
required if such information is to be provided to anybody else.
(ix) The Company shall not transfer the subscribers' databases to any person/place
outside India unless permitted by relevant Law.
(x) The Company must provide traceable identity of their subscribers.
Monitoring, Inspection and Submission of Information
(xi) The Company should ensure that necessary provision (hardware/software) is
available in their equipment for doing the Lawful interception and monitoring
from a centralized location as an when required by Government.
(xii) The company, at its own costs, shall, on demand by the government or its
authorized representative, provide the necessary equipment, services and
facilities at designated place( s) for continuous monitoring or the broadcasting
service by or under supervision of the Government or its authorized
representative.
(xiii) The Government of India, Ministry of Information & Broadcasting or its
authorized representative shall have the right to inspect the broadcasting
facilities. No prior permission/intimation shall be required to exercise the right
of Government or its authorized representative to carry out the inspection. The
company will, if required by the Government its authorized representative,
provide necessary facilities for continuous monitoring for any particular aspect
of the company's activities and operations. Continuous monitoring, however,
will be confined only to security related aspects, including screening of
objectionable content.
(xiv) The inspection will ordinarily be carried out by the government of India,
Ministry of Information & Broadcasting or its authorized representative after
reasonable notice, except in circumstances where giving such a notice will
defeat the very purpose of the inspection.
(xv) The company shall submit such information with respect to its services as may
by required by the Government or its authorized representative, in the format as
may be required, from time to time.
(xvi) The permission holder/licensee shall be liable to furnish the Government of
India or its authorized representative or TRAI or its authorized representative,
such reports, accounts, estimates, returns or such other relevant information and
at such periodic intervals or such times as may be required.
(xvii) The service providers should familiarize/train designated officials or the
Government or officials of TRAI or its authorized representative(s) in respect
of relevant operations/features of their systems.National Security Conditions
(xviii) It shall be open to the licensor to restrict the Licensee Company from operating
in any sensitive area from the National Security angle. The Government of
India, Ministry of Information and Broadcasting shall have the right to
temporally suspend the permission of the permission holder/Licensee in public
interest or for national security for such period or periods as it may direct. The
company shall immediately comply with any directives issued in this regard
failing which the permission issued shall be revoked and the company
disqualified to hold any such permission in further for a period or five years.
(xix) The company shall not import or utilize any equipment, which are identified as
unlawful and/or render network security vulnerable.
Other conditions
(xx) Licensor reserves the right to modify these conditions or incorporate new
conditions considered necessary in the interest of national security and public
interest or for proper provision of broadcasting services.
(xxi) Licensee will ensure that broadcasting service installation carried out by it
should not become a safety hazard and is not in contravention of any statute,
rule or regulation and public policy.
Joint Secretary to the
4.0 The above decision will take immediate effect.
(A .alii'XAtsro:J)
ent of India
D/o IPP File No.: No. 5/5/2012-FC.I dated: 20
t
September, 2012
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- for giving necessary publicity.
2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press
Note on DIPP 's website.

Policy on foreign investment in Power Exchanges ,Press Note No.8 (2012 Series)

Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

Press Note No.8 (2012 Series)

Subject: Policy on foreign investment in Power Exchanges

1.0 Present Position:

1.1 As per extant policy, FDI, up to 100%, under the automatic route, is permitted in the power

sector (except atomic energy). This includes generation, transmission and distribution of electricity,

as well as power trading, subject to the provisions of the Electricity Act, 2003.

1.2 Extant policy, however, does not provide any specific dispensation for foreign investment in

power exchanges.

2.0 Revised Position:

2.1 The Government of India has reviewed the position in this regard and decided to permit

foreign investment, up to 49%, in Power Exchanges, registered under the Central Electricity

Regulatory Commission (Power Market) Regulations, 2010, as below:

(i) Such foreign investment would be subject to an FDI limit of 26 per cent and an FII limit of

23 per cent of the paid-up capital;

(ii) FII investments would be permitted under the automatic route and FDI would be permitted

under the government approval route;

(iii) FII purchases shall be restricted to secondary market only;

(iv) No non-resident investor/ entity, including persons acting in concert, will hold more than 5%

of the equity in these companies; and

(v) The foreign investment would be in compliance with SEBI Regulations; other applicable

laws/ regulations; security and other conditionalities.

3.0 Insertion of new paragraph 6.2.26:

3.1 Accordingly, a new paragraph 6.2.26 is inserted under 'Circular 1 of 20 12-Consolidated FDI

Policy', effective from April 10, 2012, as below:

6.2.26 Power Exchanges

6.2.26.1 Power Exchanges registered 49% (FDI &FII) Government

under the Central Electricity (for FDI)

Regulatory Commission

(Power Market) Regulations,

2010

6.2.26.2 Other conditions:

(i) Such foreign investment would be subject to an FDI limit of 26 per cent and an

FII limit of 23 per cent of the paid-up capital;(ii) FIr investments would be permitted under the automatic route and FDI would be

permitted under the government approval route;

(iii) FIr purchases shall be restricted to secondary market only;

(iv) No non-resident investor/ entity, including persons acting in concert, will hold

more than 5% of the equity in these comp:Uies; and

(v) The foreign investment would be in compliance with SEBI Regulations; other

applicable laws/ regulations; security and other conditionalities.

4.0 The above decision will take immediate effect.

Joint Secretarx.te-th

D/o IPP File No.: No. 5/5/2012-FC.I dated: 20thSeptember, 2012

Copy forwarded to:

1. Press Information Officer, Press Information Bureau- for giving necessary publicity.

2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press

Note on DIPP's website.

The transaction cost in imports and exports in India is around 15 per cent of the cost of the goods

1.       ” Study on Trade Facilitation Gap Analysis for Border Clearance Procedures in India, undertaken on behalf of the Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, and supported by Ministry of Commerce, Govt. of India,

“Some estimates suggest that the transaction cost in imports and exports in India is around 15 per cent of the cost of the goods.

 If the time taken for clearance of import and export cargo can be brought down by 5 days from the present 10 days, there will be significant savings for the economy as a whole.

This is only to highlight the importance of Trade Facilitation to the economy. Further, competition in the international market place is getting more and more intense and unless India incrementally improves the efficiency in expediting the flow of goods at minimum time and cost, its competitiveness in international market would continue to be adversely affected

 That consignment of ACP clients would be considered as low risk and normally such import consignments of ACP clients will not be subjected to examination.

A more liberal view in respect of imports by those qualified under Accredited Client Programme (ACP) should be adopted.

Delay in the transportation of containers  to CFS  due to  monopoly of the Shipping Agents ,even , the Commissioner of Customs, Chennai had issued a public notice permitting the importers/CHAs to move the containers from the Terminal to the CFS but the Shipping Agents filed a writ petition against the  Public Notice and obtained a Stay Order from the Hon‟ble High Court.

 The system of stacking the containers, lack of adequate labour and equipment and the shortage of officers contribute to the delay in the examination

It is important to remember that today, the attempt is to create an environment of trade facilitation. There is a need for a shift in the focus from penal provisions to facilitation measures. This need not mean that violations of the law should be overlooked A more liberal view in respect of imports by those qualified under Accredited Client Programme (ACP) should be adopted”.