Centre brings in new venture to attract FDI

New Delhi

Sept. 10: The government is setting up a non-profit company “Invest India” for the promotion of foreign direct investment (FDI) into the country.
The Union commerce minister, Mr Anand Sharma, said on Thursday that the proposed company will be a joint venture between the Centre, the industry chamber Ficci and state governments. He said that the company will be responsible for promoting foreign investments into the country in a more focused, comprehensive and structured manner.
“It will assist the government in its efforts towards projecting India as an attractive investment destination for foreign investors and facilitating them in identifying and realising investment opportunities in India,” said the minister.
He said that the unique feature of this company is the partnership between the private sector organisation, the Centre and state governments. “This is no where el-se in the world and seeks both to leverage the synergies of all three as well as address their investment priorities,” he added.
The company’s management structure will comprise of a board of directors, with six members each from the department of industrial policy and promotion (DIPP) and the FICCI. The secretary DIPP will be its non-executive chairman. “The board of directors will appoint a managing director. The FICCI will provide the administrative, personnel and management support for day to day functioning,” said Mr Sharma.
The authorised capital of the firm will be Rs 10 crore and the initial paid up capital Rs 1 crore. While, the Ficci will have 51 per cent share in the equity, the DIPP will have 49 per cent share to begin with. The DIPP’s share will be red-uced overtime to 35 per cent of the paid up capital with induction of fresh eq-uity by the state governme-nts (around 28 per cent) which will get 0.5 per cent share each in the equity. The financial implication of the proposal for DIPP is Rs 49 lakhs only.
The company will act as the first reference point for any investor interested in India and will also facilitate in setting up businesses within the country, by making available sector-wise consultants and coordinating with the state government on feasible measures.
Source::DC