Download Cabinet okays 100% FDI in films, advertising

Cabinet okays 100% FDI in films, advertising
PNS/Agencies/New Delhi
The Union Cabinet on Tuesday decided to allow 100 per cent foreign direct investment in advertising and film
industry through the automatic approval route, a long-pending demand of the industry.
"The Cabinet approved a proposal to allow 100 per cent foreign investment on the automatic approval route" in these
two sectors, an official spokesperson told reporters after the meeting of the Cabinet chaired by the Prime Minister
Atal Bihari Vajpayee.
As part of its policy to promote entertainment sector, the Government liberalised the investment norms for foreign
investors in the film industry while lifting the FDI ceiling of 74 per cent for advertising sector. The proposal to allow
100 per cent FDI in the automatic approval route in the film sector meets a long pending demand of the industry
which is seen as having enormous potential.
The Cabinet also approved a comprehensive Auto Policy aimed at self-sustained growth in the automobile industry.
"The Cabinet finalised the comprehensive Auto Policy after making some suggestions for redrafting," an official
spokesperson told reporters after the meeting of the Cabinet chaired by Prime Minister Atal Bihari Vajpayee.
Though the spokesperson declined to give details of the long awaited policy, sources said the Auto Policy, providing
for 100 per cent FDI through automatic approval route, stipulated a minimum capitalisation of $100 million in case of
four wheelers and $25 million for two and three wheelers.
The Policy, formulated in conformity with the commitments made by India under the WTO, also provided that
companies wishing to undertake investments in India could pick up equity either entirely in the auto segment or
jointly in the auto and component segments, sources said.
The policy also includes major incentives for Research and Development (R&D) including an increase in the
weighted tax deduction under the Income Tax Act for in-house R&D and sponsored research.
Sources further said the policy would also encourage setting up of independent auto-design firms. The policy
reiterated Government's commitment in promoting lower emission fuel technology including use of CNG and LPG.
On the issue of import tariff, the policy lays down that tariff would be fixed to facilitate the development of more
capacity without giving undue protection, they said.
Sources said the policy also supports use of appropriate measures including anti-dumping duties in preventing any
unfair trade practices.
The Union Cabinet decided to set up a committee for promotion of Indian education abroad, informed sources said.
Sources could not immediately say whether the decision was related to ongoing efforts by the University Grants
Commission to encourage Indian universities to set up campuses abroad. The Cabinet also decided to set up an
International Education Cell and allow the committee to designate registering authorities, sources said.
The Commission turned down some proposals by Indian universities to grant franchises abroad over issues of
control, one Commission source said. The Cabinet approved a proposal to charge shopkeepers of ten markets of the
Capital a ground rate at 2.5 percent of the concessional premium actually charged from them and not on 100 percent
premium of land.
The shopkeepers of these ten markets had been given ownership rights by a Cabinet decision in October 1989 by
charging 50 to 80 percent of premium land. The decision will be applicable for Mehar Chand Market, Babu Market,
INA Market, Ali Ganj Market, Kasturba nagar Market, R K Puram Nagar's market in Sector, VI, IX and XII and INA
platforms.
Some other Cabinet decisions on Tuesday included grant of ex-post facto approval for signing and ratification of
extradition treaties between India and Mongolia and between India and Turkey, and approval to repeal the
Prevention of Food Adulteration (Extension to Kohima and Mokokchung Districts Act, 1972.