Foreign players need not get approval from FIPB

Updated on: Monday, October 03, 2011

Overseas players investing in education infrastructure in India now may not require FIPB approval following the government's decision to exempt this sector from restrictions imposed in the FDI policy.

"The decision will not only give a big boost to the sector but also address infrastructure related deficiencies," said a senior HRD Ministry official.

Under the new liberalised FDI regime announced today, conditions for foreign direct investment in respect of construction of educational institutions have been eased.

These will not be subject to minimum and built-up area, capitalisation and lock-in period norms as applicable for the construction activities.

"These conditionalities perhaps posed a constraint to FDI coming into these areas since educational institutes like schools, colleges and universities have their own special requirement which do not necessarily fit these conditionalities," a circular said.

"This step should augment the educational infrastructural in the country and bring it up to global standards," it said.

The official felt, "overseas players may not have to take Foreign Investment Promotion Board (FIPB) approval while investing in the country".

However, they will have to follow all the existing laws of the land, he said.

Foreign players need not get approval from FIPB

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