Govt. to form a Joint venture company “Invest India” for promotion of Foreign Investment
September 10, 2009:
The Cabinet today has approved the proposal of the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry for the formation of a company ‘Invest India’, for promotion of foreign investments during the XI Five Year Plan.
The proposed company which will be a joint venture between the Government of India, Federation of Indian Chambers of Commerce and Industry and the State Governments will be responsible for promoting Foreign investments into the country in a more focussed, comprehensive and structured manner. It will assist the Government in its efforts towards projecting India as an attractive investment destination for foreign investors and the foreign investors in identifying and realizing investment opportunities in India.
The unique feature of this company is the partnership between the private sector organization and the Government of India and the State Government(s). This seeks both to leverage the synergies of all three as well as address their investment priorities.
The authorized capital of the company will be Rs 10crore and the initial paid up capital Rs.1crore. While FICCI will have 51%share in the equity, DIPP will have 49 % share to begin with. DIPP’s share will be reduced overtime to 35% of paid up capital with induction of fresh equity by the State Governments (28 in no.) which will get 0.5% share each in the Equity.
Management structure of company will comprise of the Board of Directors with 6 members from DIPP and 6 members from FICCI. Secretary DIPP will be its Non Executive Chairman. The Board of Directors will appoint a Managing Director and FICCI will provide the administrative, personnel & management support for day to day functioning.
The company will act as the first reference point for any investor interested in India and will also facilitate in setting up business within the country, by making available sector wise consultants and coordinating with the state government on feasible measures. It will conduct capacity building exercises at the state government level to create an investor friendly environment. It will also undertake promotional work by expanding investor awareness beyond the metros. The company will assist DIPP and other Ministries & Departments in investment promotion projects / events and any other activity within the ambit of investment promotion.
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