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Foreign Direct Investment Part 1

Airports from time to time by Ministry of
Government approval is required for FDI Information and Broadcasting for grant
beyond 74% requiring in the Airports of permission for setting up of FM Radio
sector and up to 100% FDI is allowed. Stations. No private operator is allowed
Domestic Airlines In the domestic in terrestrial TV transmission.Coal &
Airlines allows FDI up to 49% permitted LigniteOperating power projects as well
under automatic route. 100% investment by as coal or lignite mines could be set by
NRIs permitted under automatic route Private Indian Companies or pure value
subject to no direct or indirect equity addition and integrated projects could
participation by foreign airlines. The amount up to 74% in both the fields. The
detailed guidelines could be found with company shall not do coal mining and
the Ministry of Civil Aviation.Atomic shall not sell washed coal or sized coal
Minerals from its coal processing plants in the
The following three activities are open market and shall supply the washed
permitted to receive FDI/NRI or sized coal to those parties who are
investments:Mining and mineral separation supplying raw coal to coal processing
along with the value addition per sector plants for washing or sizing and
to the products of integrated activities therefore 100% FDI is allowed for setting
including mining and mineral separation up coal processing plants.The coal
as mentioned above.The following FDI processing plants allows 100% FDI but
participation is permitted:Up to 74% in subjected to conditions and up to 50%
pure value addition and integrated under the automatic route subject to the
projects as well as projects with value condition allows FDI in all the above
addition up to any intermediate is mentioned cases shall not exceed 49% of
permitted through joint venture companies the equity of a PSU.Defense & Strategic
with Central/ State PS4.s in which equity IndustriesForeign Direct Investment,
holding of at least one PSU is not less including NRI investment, is permitted up
than 26%. In exceptional cases, FDI to 26% with prior Government approval
beyond 74% will be permitted subject to subject to licensing and security
clearance of the Atomic Energy Commission requirementsEstablishment and operation
before FIPB approval.Agriculture of SatelliteFDI up to 74% is permitted
(Including Plantation) with prior Government approvalHousing &
No FDI/NRI investments permitted other Real EstateInterestingly NRIs are allowed
than Tea sector, where FOI permitted up to invest in the following activities:
to 100% in Tea sector, including tea The development of serviced plots and
plantations, with prior Government construction of built up residential
approval and subject to following premises. The Investment in real estate
conditions:Compulsory divestment of 26% covers construction of residential and
equity in favor of Indian partner/Indian commercial premises including business
public within a period of five years, and centers and offices. Both roads and
an approval required in case of any bridges include with the development of
future land use change from the Prior townships, city and regional level urban
State government.The above dispensation infrastructure facilities. FDI is also
would be applicable to all fresh open to investment in manufacture of
investments (FDI) made in this building materials along with investment
sector.Broadcasting and TV Software in participatory ventures mentioned in
Production allows upto100% foreign (a) to (e) above. Housing finance
investment but is subjected to following institutions and related investment is
clauses mentioned below:The future laws also open to FDI as an NBFCInvesting
on broadcasting and no claim of any Companies in Infrastructure/Service
privilege or protection by virtue of SectorIn respect of the companies in
approval accorded, and; not undertaking infrastructure/service sector, where
any broadcasting from Indian soil without there is a prescribed cap for foreign
Government approval.Setting up hardware investment, only the direct investment
facilities, such as unlinking, HUB, etc. will be considered for the prescribed cap
Private companies incorporated in India and foreign investment in an investing
with permissible FII/NRI/PIO equity company will not be set off against this
within the limits (as in the case of cap provided the foreign direct
telecom sector FDI limit up to 49% investment in such investing company does
inclusive of both FOI and portfolio not exceed 49% and the management of the
investment) to set up unlinking hub investing company is with the Indian
(teleports) for leasing or hiring out owners. The automatic route is not
their facilities to broadcasters. All TV availableInsuranceFDI up to 26% in the
channels irrespective of management Insurance sector is allowed on the
control to uplink from India in regards automatic route subject to obtaining
to satellite broadcasting is available license from Insurance Regulatory &
provided that they undertake to comply Development Authority (IRDA)Lottery
with the broadcast (program & Business, Gambling & BettingGovernment
advertising) code.Under the Cable has reiterated prohibition of Foreign
Television Network Rules (1994) to Direct Investment (FDI) / Foreign
provide cable TV services, foreign Technical Collaboration (FTC) in any form
investment is allowed up to 49% in lottery business, gambling and betting
(inclusive of both FDI and portfolio sector. Foreign Technology Collaboration
investment) of paid up share capital. 51% including Franchise/Trading/brand name,
of paid up share capital must be held by management contract etc. Gambling and
Indian citizens within a company and are betting sector is also prohibited in the
eligibleThe company with a maximum of lottery business.MiningThe mining of
foreign equity including FDI/NRI/FII of diamonds and precious stones FDI is
49% would be eligible to obtain allowed up to 74% under automatic route.
Direct-to-Home License. The FDI component For exploration and mining of gold and
cannot exceed 20% within the foreign silver and minerals other than diamonds
equity. The Terrestrial Broadcasting FM and precious stones, metallurgy and
licensee will be a company registered in processing, allows up to 100% under
India under the Companies Act. NRI & PIO automatic route. Setting up 100% owned
investments and portfolio investments has subsidiaries in the mining sector is
been permitted including FDI or Foreign concerned and subjected to a declaration
investment up to 20% equity for FM from the applicant that he has no
Radio's Broadcasting services subject to existing joint venture for the same area
such terms and conditions as specified and / or the particular mineral.




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