Saturday, July 14, 2007

HOTELS, ADVT., FRANCHISEE MAY NOT NEED NOC

The Government is planning to further liberalise the Foreign direct Investment (FDI) regime by exempting several sectors from the mandatory requirements under Press Note 1 (PN 1). Advertising, hospitality, franchisee operations and several other services could be kept out of the purview of PN 1, which bars multinationals in existing joint ventures (JV) from setting up another venture in a similar line of business without a non objection from the Indian JV partner. The move is expected to remove a major irritant in sectors such as advertising, hotel, agro processing and franchising. The department of industrial policy and promotion has circulated a note on this as a part of an overall review of FDI regulations. At present, mining and IT are exempted from PN 1.

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