With the shifting of the Foreign Investment Promotion Board to the finance ministry, the government has now reconstituted the board appointing Finance Secretary S Narayan as its chairperson.
The FIPB will now comprise of a four-member core group of secretaries with Narayan in his capacity as secretary, economic affairs, as the chairperson.
The other three members will be secretary in the Department of Industrial Policy and Promotion in the Industry Ministry, commerce secretary and secretary, Economic Relations in the External Affairs Ministry, sources said.
To service the FIPB, a separate secretariat will be created and located in the Department of Economic Affairs.
For this purpose the staff, which is at present dedicated to the FIPB work in the Department of Industrial Policy and Promotion will be transferred to the DEA in the finance ministry.
The secretariat will receive and process the applications and proposals for foreign investment and place them before the FIPB for consideration.
Thereafter, it would submit the recommendations of the Board to the Minister of Finance and Company Affairs or the CCEA as the case may be for a decision.
Recommendation of the FIPB in respect of the project-proposals each involving the total investment of Rs 600 crore (Rs 6 billion) or less would be considered and approved by the finance and company affairs minister.
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