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FDI in retailing mooted, print media to be kept out

The steering group on foreign direct investment for the Tenth Plan favours allowing FDI in new areas like retailing, but recommends a status quo in the print media.

''We are inclined to support FDI in retailing. We will go into the underlying reasons for the ban on the foreign investment in this sector. If the fear is unjustified, we will support FDI. However, we will also take into account genuine concerns,'' Arvind Virmani, adviser in the Planning Commission and a member of the group, told reporters in New Delhi on Wednesday.

The high profile group, headed by Planning Commission member N K Singh, however, does not favour FDI in the print media. "It is unlikely in the print media," Virmani said.

The other sectors where the group is in favour of allowing FDI or lifting the sectoral cap comprise plantations, including tea and the airlines. "There is a need for replantation in the tea estates. In any case, most of the estates were owned by the foreign companies till 1971," the Planning Commission adviser said.

Significantly, the group, whose recommendations are likely to find reflections in the forthcoming Budget, has suggested continuation of a 49 per cent investment in the telecom sector.

Asked whether Finance Minister Yashwant Sinha would incorporate some of the key recommendations of the group in his Budget, Virmani said some of the members are from the finance ministry.

"They know what is going on and N K Singh has met Sinha many times."

With a view to realising the Tenth Plan objective of $10-billion FDI per annum, the steering group is working on certain recommendations. These include a separate overriding law for granting permission to FDI proposals and a separate legislation to ensure efficient infrastructure within the special economic zones, taking China as a model.

The group will complete its recommendations by the end of March.

"In the next two or three meetings we will have to take decisions," Virmani said.

UNI

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