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April 2008

Press Note No. 5 (2008), dated 12-3-2008. — Rationalisation of FDI Policy for the Petroleum & Natural Gas Sector.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi
Chartered Accountants
Reading Time 1 mins
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Part C : RBI/FEMA

Given below are the highlights of 6 Press Notes issued by the
Ministry of Commerce & Industry.

 

20 Press Note No. 5 (2008), dated 12-3-2008.
— Rationalisation of FDI Policy for the Petroleum & Natural Gas Sector.

FDI policy in the Petroleum & Natural Gas sector has been
rationalised as under :



(a) The condition of compulsory divestment of up to 26%
equity within 5 years, in case of 100% foreign ownership in companies engaged
in actual trading and marketing of petroleum products, stands deleted.

(b) FDI up to 49% is allowed after obtaining prior approval
of FIPB in petroleum refining by Public Sector Undertakings (PSU) without
involving any divestment or dilution of equity in existing PSU.

 


FDI policy Annexed to Press Note No. 4 (2006), dated
10-2-2006 stands modified to the extent stated above.

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