COMMENTS ON FEMA (FOREIGN EXCHANGE AND MANAGEMENT ACT

FEMA requires observation of its provisions in letter and spirit and if any contravention may land in penalties on the erring company and individuals. There are various conditions and stipulations in case of FDI , ODI , investment by individuals in foreign shares , purchase of assets in foreign countries , extending guarantees , availing ECBs , supplier's credit . In this column , I will discuss all intricacies and complications involving the interpretation of FEMA Act provisions in detail.

Showing posts with label NO PRIOR GOVERNMENT APPROVAL IS NEEDED FOR OIL N GAS PROJECT. Show all posts

Wednesday, March 20, 2013

FDI IN OIL & NATURAL GAS PROJECT WILL BE UNDER AUTOMATIC ROUTE

Foreign Investment in Oil And Natural Gas Projects

As per extant Foreign Direct Investment (FDI) policy, FDI, up to 100%, is permitted, under the automatic route, for exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product pipelines, natural gas/pipelines, LNG regasification infrastructure, market study and formulation and petroleum refining in the private sector, subject to the existing sectoral policy and regulatory framework in the oil marketing sector and the policy of the Government on private participation in exploration of oil and the discovered fields of national oil companies.

Extant FDI policy, therefore, does not envisage Government approval for bringing FDI into companies carrying on these activities.