NEW DELHI: In order to attract more foreign investment into the country, the Centre is considering implementing a special window for large investment proposals exceeding Rs 500 crore. According to the sources in the finance ministry, a draft proposal on the same is currently under consideration and the announcement is likely to be made in the upcoming Budget.
“There are more measures under consideration for improving the ease of doing business. One is to get a simplified single window clearance for investment proposals which are above Rs 500 crore. The matter is under consideration and a nod had been given by the PMO,” a senior official from the finance ministry said. The government may also consider including domestic investors such as Pension Funds and Sovereign Wealth Funds (SWF) under this special window.
Elaborating further, the official said that large foreign investment proposals will get a response from the government within five days. The move is not new. The matter was first proposed during a meeting held by Prime Minister Narendra Modi with leading global investors last year.
After the meeting, the PMO had initiated discussions on simplifying the process for foreign investment as too many windows deter many investors. The new proposal has been named Special Window for Financial Investors Facilitation or SWIFT. Finance Minister Nirmala Sitharaman had also given hints of such an initiative a few weeks ago.
According to officials, some of the proposals included under the draft are provisions for the government to make a mandatory response within five days followed by processing in the concerned ministry. A special team will also be created under the Department of Economic Affairs to monitor such cases and send fortnightly reports on the same. The official added that if a ministry is unable to work on a proposal, the matter will be immediately be sent to PMO, marked as a critical case, speeding up the investment process.
Mandatory response to investors
Some of the proposals included are provisions for the government to make a mandatory response within five days followed by processing in the concerned ministry. A special team will also be created under the Department of Economic Affairs to monitor cases.