- Industries licensing policy are regulated under the Industries Development Regulation Act 1951
- At present Industrial Licensing for manufacturing is required in case of :-
- Industries under compulsory licensing
- Manufacture of item reserved for SSI sector by non SSI units
- Project location attracts locational restrictions
- Industries exempted from Industrial license are required to file Industrial Entrepreneur's Memorandum (IEM)
Foreign Technology Agreement
- Foreign technology collaboration agreement is required for acquisition of foreign technology. It normally includes technical know-how, for design and training, engineering services and royalty.
- Payment for foreign technology collaboration under automatic route is allowed subject to:
- The lumpsum payment not exceeding US $ 2.0 million.
- Royalty payable limited to 5% for domestic sales and 8% for exports.
- Project Approval Board (PAB) grants permission for other proposals.
Foreign Direct Investment
- Foreign direct investment is allowed upto 100% in all activities /sectors except few activities.
- Under automatic route, the investors are only required to notify the Regional Office of RBI within 30 days on receipt of inward remittance and file the required documents with that office.
- Activities not covered under automatic route require prior Government approval. The proposals are considered by the Foreign Investment Promotion Board (FIPB)
100% Export Oriented Units
- The Development Commissioner of Special Economic Zones accord automatic approval meeting certain conditions.
|
