India and Brunei to Have Joint Investment in Hotel Sector

Press Information Bureau: Oct 19, 2012India and Brunei will explore the possibilities of joint venture investment in the field of hotel industry and infrastructural development. Brunei will also consider investing in India’s hotel sector, which has been opened up for 100% foreign direct investment. This was decided at a meeting between Minister of Industry and Primary Resources of Brunei, Mr. Pehin Dato Yahya and Union Tourism Minister Shri Subodh Kant Sahai held here today.

It was also decided in the meeting that Tour Operators and Travel agents of both the countries may cooperate and explore the possibilities for promoting package tours in either of the countries. Both the countries will also cooperate in exchanging information and know-how for development of tourism in their respective countries. India also offered to sponsor a visit by a team of tour operators / travel media from Brunei to India on a familiarization tour under Ministry of Tourism’s hospitality scheme.

Earlier in his welcome address Shri Sahai said that India and Brunei have enjoyed traditionally close and cordial bilateral relations sustained through regular high level political contacts.

Mr. Yahya in his address appreciated the friendly relations between the two countries and emphasised upon the importance of pursuing a closer relationship based on the emerging potential in the tourism sector in the two countries.

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Railways Encourage Private Investment for Improving Rail Infrastructure

Press Information Bureau: Nov 22, 2012A draft policy for strengthening rail connectivity and capacity augmentation is under consideration. The policy envisages certain participative models to encourage private investment for improving rail infrastructure.

A number of areas have been identified for project execution through Public Private Partnership. These include an elevated rail corridor (Churchgate, Private freight terminals, Terminal Development Scheme, Development of Automobile and Ancillary Hub, Liberalized Wagon Investment Scheme, Wagon Leasing Scheme, Automobile Freight Train Operators Scheme, Special Freight Train Operator Scheme, Port connectivity, Dedicated Freight Corridors and loco and coach manufacturing units, etc.

Memorandums of Understanding (MoUs) have been signed with Belgium, Austria and Spain for cooperation for effective development and modernisation of Railway sector in the country. The cooperation programme, inter alia, includes consultation for modernisation of railway stations, introduction of High Speed, Signalling, etc.

This information was given by the Minister of State for Railways Shri Adhir Ranjan Chowdhury in written reply to a question in Lok Sabha today.

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Investment by Foreign Companies in SME

Press Information Bureau: Nov 30, 2012To promote capital investment by foreign multinational companies in small and medium enterprises the Foreign Direct Investment (FDI) in micro and small enterprises (MSEs) has been raised to 100 percent from 24 per cent. However, FDI in MSMEs is subject to sectoral caps and other relevant sectoral regulations.

Enhanced capital investment by foreign multinational companies will create an environment of healthy competition among MSMEs whether financed by foreign investment or otherwise, resulting in availability of better products for consumers.

This information was given by the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Shri K. H. Muniyappa in a written reply to a question in the Lok Sabha today.

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Policies for Private Investment in Railways

Press Information Bureau: Dec 06, 2012A number of policies were announced during Eleventh Five Year Plan to encourage private investment in terminals and wagons. These include: Private Freight Terminal policy (PFT), Special Freight Train Operations (SFTO) policy, Automobile Freight Train Operators (AFTO) policy, Auto-hub-ancillary policy, Operation of Container Trains, R3i (Railways’ Infrastructure for Industry Initiative) and R2CI (Rail connectivity to coal and iron ore mines) policies to facilitate participation of private sector in the development of Railway Infrastructure.

While these policies will continue to be pursued during the Twelfth Five Year Plan, a revised policy for encouraging private participation in rail connectivity projects has been approved recently by the Union Cabinet.

Approval of 53 rakes have been given under Liberalized Wagon Investment Scheme, 3 rakes approval have been given for Special Freight Train Operators Scheme, notification for 8 Private Freight Terminal have been issued, 17 private container train operators have now been given permission for operation of container trains.

This information was given by the Minister of State for Railways Shri Adhir Ranjan Chowdhury in written reply to a question in Lok Sabha today.

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Steps to Promote Investment in Agriculture

Press Information Bureau: Dec 12, 2012The Government of India has launched several schemes to increase public investment in agriculture sector, such as, the Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds, National Horticulture Mission (NHM), Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize(ISOPOM), Gramin Bhandaran Yojana etc.

In addition, Government has substantially improved the availability of farm credit and increased Minimum Support Price to improve investment in the farm sector.

Allocation of the Department of Agriculture & Cooperation has increased considerably from Rs.5560.00 crore in 2007-08 to Rs.20208.00 crore in 2012-13 facilitating more investment in agriculture sector.

Besides, the Government has issued a “Framework for Public Private Partnership for Integrated Agricultural Development” under RKVY for facilitating large scale integrated projects, led by private sector in the agriculture and allied sectors, with a view to aggregating farmers and integrating the agricultural supply chain.

FDI, upto 100% is permitted, under the automatic route, subject to conditions, as mentioned in para 6.2.1.1 of Circular 1 of 2012 – Consolidated FDI Policy, in the following agricultural activities:

Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions; Development and production of Seeds and planting material; Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and Services related to agro and allied sectors.

This information was given by Shri Tariq Anwar, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.

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