Government Revises SOP for FDI Approvals:
The Ministry of Commerce issued a revised Standard Operating Procedure (SOP) for processing Foreign Direct Investment (FDI) applications to improve transparency and efficiency.
- The updated SOP fixes a maximum processing timeline of 12 weeks for FDI applications, compared to the earlier 10-week limit under the 2017 SOP.
- All FDI proposals must now be filed through the Foreign Investment Facilitation (FIF) Portal or National Single Window System (NSWS), making the process fully paperless.
- DPIIT will identify the concerned ministry within two days and circulate proposals to agencies such as Reserve Bank of India (RBI), Ministry of Home Affairs(MHA) and Ministry of External Affairs for examination.
- Investments in sensitive sectors like defence, telecom, broadcasting, civil aviation, space and mining will require security clearance from the Ministry of Home Affairs (MHA).
- FDI proposals involving equity investment above ₹5,000 crore will require approval from the Cabinet Committee on Economic Affairs (CCEA).
- Investments from India’s land-border countries, such as China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar and Afghanistan, or those with beneficial owners from these countries, will require MHA security clearance.
- However, select strategic sectors such as electronics, advanced battery components, and rare-earth processing will receive expedited processing within 60 days.
