The Arvind Mayaram committee suggested that in sectors like power exchanges, petroleum & natural gas refining, there is a need for mandatory Indian ownership.
These sectors are part of the nine sectors that the panel recommended for classifying as those where ‘Indian ownership’ and ‘control’ will be mandatory.
It may be recalled that the central government set up the Arvind Mayaram committee to suggest measures for liberalising the country’s foreign direct investment (FDI) policy.
The other sectors recommended for such a classification are FM radio, uplinking news and current affairs, print media (news & current affairs), commodity exchanges, stock exchanges along with depositories
and clearing corporation, insurance, defence production and private security agencies.
According to the recommendation, FDI must be limited at 49 per cent in nine sectors and clearance (except for defence production and private security agencies) be through the automatic route.
According to the existing regime, in sectors such as commodity exchanges, stock exchanges and power exchanges, though up to 49 per cent FDI is allowed, the proposals need to be vetted by FIPB.
Petroleum & natural gas refining companies, too, can bring in up to 49 per cent FDI but for public-sector companies that needs to come via FIPB. Now, these are proposed to come under the automatic route.
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