Government examining foreign fund flows in infrastructure at strategic locations
The RBI is also examining the
need for greater scrutiny of the FDI coming through the automatic route where
companies are only required to inform the regulator about the fund flow within
a stipulated time.
The government has initiated
review of foreign fund flows in sensitive like telecom and physical
infrastructure at strategic locations of the country, according to sources.
A comprehensive review has been
undertaken to assess the control over various infrastructures at strategic
locations and border areas of the country
Given the fact that majority of
the industries are now under automatic route for foreign direct investment
(FDI) rather than the approval route, the sources said, it is required to have
an idea on the foreign presence in these areas including the northeastern
Keeping in view the strategic
importance, the sources said, the government decided against closure of Bharat
Sanchar Nigam Ltd. The state-owned telecom company has a strong network at
Most countries do not allow
foreign players to participate in strategic infrastructure projects.