The government will clear all FDI proposals requiring approval within a maximum of 10 weeks after the receipt of an application as per the standard operation procedure which replaces FIPB. The move is aimed at improving investment climate of the country. The new mechanism will replace the Foreign Investment Promotion Board (FIPB), abolished by the government. According to the standard operation procedure (SOP) released by Department of Industrial Policy and Promotion (DIPP) today, proposals not requiring security clearance would be cleared in eight weeks and applications that require security nod would take a cumulative time period of ten weeks.
Additional time of two weeks will be given to DIPP for consideration of the proposals proposed for rejection or where additional conditions which are not provided in the FDI policy are proposed to be imposed by the competent authority.