According to the extant Foreign Direct Investment (FDI) policy, FDI, up to 100 percent, is permitted, under the automatic route, for exploration activities of oil and natural gas fields.
This information was given by the Minister of State in the Ministry of Commerce & Industry, D Purandeswari in a written reply in the Rajya Sabha.
The 100 percent FDI is also allowed for setting up infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product pipelines, natural gas or pipelines.
The government also allowed 100 percent FDI in LNG regasification infrastructure, market study and formulation and petroleum refining in the private sector.
But the FDI is subject to the existing sectoral policy and regulatory framework in the oil marketing sector and the policy of the government on private participation in exploration of oil and the discovered fields of national oil companies.
Extant FDI policy, therefore, does not envisage government approval for bringing FDI into companies carrying on these activities.
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