India Thursday doubled the limit for foreign direct investment proposals that require the prior approval of the federal cabinet, leaving the finance minister with greater powers to decide on such matters.
A meeting of the Cabinet Committee Economic Affairs, presided over by Prime Minister Manmohan Singh here, raised the limit based on the recommendations by the commerce and industry ministry.
At present, on the basis of the recommendations made by the Foreign Investment Promotion Board, all proposals with a total project cost of up to Rs.600 crore ($120 million) are approved by the finance minister and those above are placed before the federal cabinet.
Based on the decision Thursday, only proposals involving total foreign equity inflow of more than Rs.1,200 crore ($240 million) will be placed for consideration by the Cabinet Committee on Economic Affairs, an official statement said.
'With the government's further liberalisation, the approval is expected to save time and efforts for Foreign Investment Promotion Board and the Cabinet Committee on Economic Affairs, and also expedite foreign investment inflow,' the statement added.