AMN
Congress today said it would not support easing of FDI norms in the defence sector as there is no national consensus on it. Interacting with media in New Delhi , senior Congress leader Anand Sharma said, party favours FDI in defence sector also but the checks cannot be removed in a sensitive sector like this.
The government on Wednesday relaxed foreign direct investment norms in the defence sector by allowing FDI up to 49 per cent under automatic route and beyond that through the FIPB’s approval.
He said, UPA government had increased FDI in defence to 49 per cent but there was a condition that there would be scrutiny by the Foreign Investment Promotion Board FIPB and subject to approval of Cabinet Committee of Security, CCS .
He said, NDA government has dispensed with any FIPB scrutiny or CCS approval for FDI up to 49 per cent and put it under automatic route.
The Congress leader said that while an impression is being given that these are just executive decisions but the government is obliged to come to Parliament also.
He said, once the FDI policy decisions are made, it is mandatory that RBI will come up with a FEMA notification, which the government is obliged to table in both Houses of Parliament and Parliament alone would ratify those notifications in both Houses independently.
The Congress leader also expressed concerns over the opening up of the media sector, particularly the news and current affairs. He said, his party does not want foreign media gaints to come and control Indian media.
Mr. Sharma said it was also perhaps the first time such decisions had been taken without cabinet approval.