The government will clear all FDI proposals within a maximum of 10 weeks after the receipt of an application as per the Standard Operation Procedure(SOP) released by the Department of Industrial Policy and Promotion (DIPP) on Thursday. The new mechanism will replace the Foreign Investment Promotion Board (FIPB) which has been abolished by the government. The move is aimed at improving investment climate of the country.
As per the guidelines, proposals not requiring security clearance will be cleared in eight weeks and applications that require security nod would take a cumulative time period of ten weeks.
The FDI proposals requiring government’s nod will have to be vetted by the concerned ministries or departments.
Proposals for foreign investment in sectors requiring government approval will be filed online on the revamped FIPB portal which has been renamed as Foreign Investment Facilitation Portal (FIFP).