Paragraph 4.1 Competent Authority
- Text as on
- As issued 15 October 2020; Press Notes since are not applied
4.1 COMPETENT AUTHORITY
4.1.1 Following are the Competent Authorities for grant of approval for foreign investment for sectors/activities requiring Government approval:
S. No. Activity/ sector Administrative Ministry/
Department
(i) Mining Ministry of Mines
(ii) Defence
a) Items requiring Industrial Licence under the Department of Defence
Industries (Development & Regulation) Act, 1951, Production, Ministry of
and/or Arms Act, 1959 for which the powers have Defence
been delegated by Ministry of Home Affairs to DPIIT
b) Manufacturing of Small Arms and Ammunitions Ministry of Home Affairs
covered under Arms Act 1959
(iii) Broadcasting Ministry of Information &
(iv) Print Media/Digital Media Broadcasting
(v) Civil Aviation Ministry of Civil Aviation
(vi) Satellites Department of Space
(vii) Telecommunication Department of
Telecommunications
(viii) Private Security Agencies Ministry of Home Affairs
(ix) (a) Applications involving investments from an entity of Concerned Administrative
a country, which shares land border with India or Ministry/Department as
where the beneficial owner of an investment into identified by the DPIIT
India is situated in or is a citizen of any such country
{as required in terms of Press Note 3 of 2020 read
with Foreign Exchange Management (Non-debt
Instruments) Amendment Rules, 2020 dated
22.04.2020}
(ix)(b) Cases pertaining to sectors/activities under Nodal Administrative
Government approval route requiring security Ministries/Departments
clearance as per the extant Foreign Exchange
Management (Non-Debt Instruments) Rules, 2019,
FDI Policy and security guidelines, as amended from
time to time
(x) Trading (Multi Brand Retail Trading and Food Department for Promotion of
Product retail trading) Industry and Internal Trade
(xi) FDI proposals by Non-Resident Indians (NRIs)/
Export Oriented Units requiring approval of the
Government
(xii) Applications relating to issue of equity shares under Concerned Administrative
the FDI policy under the Government route for Ministry/Department as
import of capital goods/machinery/equipment identified by the DPIIT
(excluding second-hand machinery)
(xiii) Applications relating to issue of equity shares for
pre-operative/pre-incorporation expenses (including
payments of rent etc.)
(xiv) Financial services activity which are not regulated by
any Financial Sector Regulator or where only part of
the financial services activity is regulated or where
there is doubt regarding the regulatory oversight Department of Economic
(xv) Applications for foreign investment into a Core Affairs
Investment Company or an Indian company
engaged only in the activity of investing in the
capital of other India Company(ies)
(xvi) Banking (Public and Private) Department of Financial
Services
(xvii) Pharmaceuticals Department of
Pharmaceuticals
4.1.2 In respect of sectors/activities which are presently under automatic route but required Government approval earlier as per the extant policy during the relevant
period, concerned administrative Ministry/Department would be the Competent Authorities for the grant of post-facto approval for foreign investment.
4.1.3 In respect of applications in which there is a doubt about the Administrative Ministry/Department concerned, DPIIT shall identify the Administrative Ministry/Department where the application will be processed.
4.1.4 Proposals for foreign investment would be examined by Competent Authorities as per the Standard Operating Procedure laid down by DPIIT (available at http://www.fifp.gov.in/Forms/SOP.pdf).
4.1.5 In case of proposals involving total foreign equity inflow of more than Rs 5000 crore, Competent Authority shall place the same for consideration of Cabinet Committee on Economic Affairs (CCEA).
4.1.6 The CCEA would also consider the proposals which may be referred to it by the Minister-in-charge of the concerned Competent Authority.
4.1.7 In respect of proposals where the Competent Authority proposes to reject the proposals or in cases where conditions for approval are stipulated in addition to the conditions laid down in the FDI policy or sectoral laws/regulations, concurrence of DPIIT shall compulsorily be sought by the Competent Authority. 2
4.1.8 The monitoring of the compliance of conditions under the FDI approvals, including the past cases approved by the Government, shall be done by the concerned Administrative Ministries/Departments.