FDI in retail and aviation sectors set to become a reality now

September 21, 2012

FDI_Retail

New Delhi, September 21: The government on Thursday evening braved intense political opposition and a nationwide bandh to notify the rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India.

The government also notified the relaxed conditions for single-brand retail as well as the norms for allowing 49% investment by foreign airlines in Indian carriers and permitting greater foreign investment in some sections of the broadcasting sector, sending out a clear message that it will not be cowed down by protests and effectively severing its relations with Trinamool Congress.

These notifications give effect to the decisions taken by the Cabinet last Friday, which have resulted in a political uproar and possibly threatened the long-term stability of the Manmohan Singh government.

Industry was quick to welcome the government's move. "...the notifications have been issued quite promptly, reflecting the government's strong commitment towards the reforms process. This will put to rest all apprehension on whether there would be any turnaround," said CII Director-General Chandrajit Banerjee.

The policy says foreign retailers can only open stores in states that have agreed to allow FDI in multi-brand retail. "The above policy is an enabling policy only," said the press note issued by the Department of Industrial Policy & Promotion.

Bar on Online Retail Trading

"State governments and Union Territories would be free to take their own decisions in regard to implementation of the policy," said the DIPP press note. The policy prohibits retail trading through e-commerce by companies with FDI engaged in multibrand retailing. This means the ban on FDI in B2C e-commerce continues, preventing Amazon and others from entering India.

The states that have agreed to allow foreign investment in multibrand retail, according to the press note, are Andhra, Assam, Delhi, Haryana, J&K, Maharashtra, Manipur, Rajasthan, Uttarakhand and the UTs like Daman & Diu and Dadra and Nagar Haveli.

The new rules stipulate that foreign retailers will have to invest a minimum of $100 million, and at least 50% of the total FDI brought in will have to be invested in backend infrastructure. They will have to source 30% of products from small industry within five years of operations, and every year subsequently.

Moreover, if a small industry crosses the $1-million investment mark in plant and machinery, purchases from it will not be counted towards the 30% mandatory sourcing requirement. If a state does not have a city with one million population, an exemption can be made.

The DIPP has also notified the relaxed rules for single-brand retail trading, allowing foreign retailers with more than 51% FDI the freedom to locally source 30% of the value of goods sold over a five-year period initially, and every year subsequently.

It also relaxed the condition that the single-brand retailer has to own the brand, allowing any one entity to retail the brand. Even FDI-funded single-brand retailers will not be allowed to sell their goods through e-commerce.

"The guidelines will allow many single-brand retail companies to come to India," said Diljeet Titus, senior partner at Titus & Co, which is working with foreign retailers looking to enter India.


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News Network
March 9,2020

Kolkata, Mar 9: A diabetic man died in the isolation ward of a hospital in West Bengal's Murshidabad on Sunday, a day after he was admitted there with suspected symptoms of coronavirus following his return from Saudi Arabia.

According to doctors, he was admitted to the hospital with fever, cough and cold.

Though test results of his blood and swab samples for novel coronavirus were awaited, it can be said that he died probably of diabetes, Director of Health Services Ajay Chakraborty told PTI.

"The man was highly diabetic and was on insulin. He returned home from Saudi Arabia and had no money to take insulin for the last three to four days.

"He was also suffering from fever, cough and cold. He was admitted to the isolation ward of the Murshidabad Medical College and Hospital yesterday and died today," the health services director said.

"We are waiting for the results of medical tests. The possibility of his death due to novel coronavirus infection is remote," he said.

However, precautions will be taken during the last rites of the victim according to the directives set by the central and state governments for patients who die of the virus, another senior official said.

"Family members will not be allowed to touch the body since the man had been suffering from cough and breathlessness. Those performing his last rites will be given protective gear, masks and gloves. Though test results are yet to be known, we do not want to take any chance," he said.

Meanwhile, the state health department has issued a directive to all private medical facilities to create a system for assessing all patients at admission allowing early recognition of possible COVID-19 infection and immediate isolation of patients with suspected novel coronavirus infection in an area separate from other patients.

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News Network
June 26,2020

Jun 26: The Supreme Court on Friday permitted the Centre and the CBSE to cancel the remaining board examinations due to the COVID-19 pandemic and gave the go-ahead for the scheme to award marks to students for the cancelled papers scheduled to be held in July.

A bench of Justices A M Khanwilkar, Dinesh Maheshwari and Sanjiv Khanna permitted the CBSE to issue a notification for the cancellation of the examinations.

Solicitor General Tushar Mehta, appearing for the Centre and the CBSE, said that the assessment scheme would consider marks scored by students in the last three papers of the board exams.

Both CBSE and ICSE told the top court that the results of the class X and XII board exams can be declared by the middle of July.

The top court was hearing pleas seeking relief, including scrapping of remaining exams of Class 12 scheduled from July 1 to 15, in view of increasing number of COVID-19 cases. Similar relief was sought by the ICSE Board also.

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News Network
March 28,2020

Mumbai, Mar 28: Doctors in Mumbai have not been spared by the novel coronavirus. As Mumbai’s count for Covid-19 cases went up to 58, an octogenarian doctor from Saifee Hospital passed away on Friday. He was a suspected case of coronavirus with co-morbid conditions like diabetes and had a pacemaker implanted, said a press release from the state health department.

As per a statement from Saifee Hospital, he underwent a CT scan at Saifee Hospital and was diagnosed positive for Covid-19. The surgeon was transferred to the special isolation facility at PD Hinduja Hospital where he subsequently died. Behranwala’s close relatives had come down from England and were under quarantine.

In a statement, Saifee Hospital, where Behranwala underwent CT scan, said, "All containment and surveillance measures have been implemented to ensure the safety of our staff patients and visitors. Saifee Hospital reiterates that the Hospital is fully operational," said Dr Vernon Desa, Director (Medical governance and clinical compliance) Saifee Hospital.

In the second case, an Andheri-based doctor, aged 53, has been tested positive along with his 43-year-old wife and 20-year-old daughter. The family doesn’t have a travel history. The doctor reportedly came in contact with the virus through a patient. MCGM has taken samples of 60 patients who came in contact with the doctor. "As of now, no patient from his contact has tested positive," Assistant Commissioner, Vishwas Mote.

Another doctor who practiced at Vakola tested positive after he came in contact with a person having travel history to Italy, later tested positive. The doctor has been admitted at Raheja hospital and samples of his close contact have been taken.

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