. Poultry breeding farms and hatcheries where micro-climate is controlled through advanced technologies like incubators, ventilation systems etc.
- In the case of pisciculture and aquaculture, "under controlled conditions" includes;
. Aquariums
. Hatcheries where eggs are artificially fertilised and fry are hatched and incubated in an enclosed environment with artificial climate control.
12.
Sector: Mining
Sub-Sector: Mining covering exploration and mining of diamonds and precious stones; gold, and silver.
Industry Classification: NIC: 13 ISIC: Q7, 08, 099
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.
Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.
Press Notes and Circulars on FDI Policy issued by the Central Government.
Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957 and all regulations/rules/orders issued thereunder.
Offshore Areas (Mineral Development and Regulation) Act, 2002 and all regulations/rules/orders issued thereunder.
Cess and Other Taxes on Minerals Validation Act, 1992 and all regulations/rules/orders issued thereunder.
Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.
Forest Conservation Act, 1980 and all regulations/rules/orders issued thereunder.
Description: 100 percent FDI is allowed under the automatic route in Mining and Exploration of metal and non-metal ores including diamond, gold, silver and precious ores but excluding titanium bearing minerals and its ores; subject to the MMDR Act, 1957. Also subject to the condition that in the event the foreign investor is establishing a 100 percent subsidiary, it shall submit a declaration to the effect that it has no existing joint venture for the Same area or for a particular mineral.
13.
Sector: Mining and Quarrying
Sub-Sector: Mining of coal and lignite, extraction of peat.
Industry Classification: NIC: 10 ISIC: 05, 0892, 099
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.
Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.
Press Notes and Circulars on FDI Policy issued by the Central Government.
Coal Mines (Nationalisation) Act, 1973 and all regulations/rules/orders issued thereunder.
Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957 and all regulations/rules/orders issued thereunder.
Offshore Areas (Mineral Development and Regulation) Act, 2002 and all regulations/rules/orders issued thereunder.
Cess and Other Taxes on Minerals Validation Act, 1992 and all regulations/rules/orders issued thereunder.
Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.
Forest Conservation Act, 1980 and all regulations/rules/orders issued thereunder.
Atomic Energy Act, 1962 and all regulations/rules/orders issued thereunder.
Atomic Energy (Radiation Protection) Rules, 2004.
Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987.
Description:
(a) 100 percent FDI is allowed under the automatic route in Coal and Lignite mining for captive consumption by power projects, iron and steel and cement units and other eligible activities permitted under and subject to the provisions of Coal Mines (Nationalisation) Act, 1973.
(o) 100 percent FDI is allowed for setting up coal processing plants like washeries, subject to conditions.
14.
Sector: Mining and Quarrying
Sub-Sector: Mining of uranium and thorium ores.
Industry Classification: NIC: 14 ISIC: 0721, 099
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Uranium and Thorium ores are "atomic minerals" under Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957
Description: Under the provisions of the MMDR Act, 1957, the reconnaissance or prospecting or mining operations can be undertaken only pursuant toa licence and consequent lease and no person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of reconnaissance permit or of a prospecting licence or, as the case may be, a mining lease, granted under the MMDR Act, 1957 and the rules made thereunder.
Government shall not grant reconnaissance permit, prospecting licence or mining lease to any person unless such person:
(a) is an Indian national, ora Company as defined in sub- section (1) of Section 3 of the Companies Act, 1956; and
(b) satisfies such conditions as may be prescribed.
Provided that in respect of any mineral specified in the First Schedule of MMDR Act, 1957, no prospecting licence or mining lease shall be granted except with the previous approvals of the Central Government.
Explanation - For the purposes of this reservation, a person shall be deemed to be an Indian national:
(a) in the case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and
(b) in the case of an individual, only if he is a citizen of India.
A State Government may either with the previous approval of the Central Government or at the instance of the Central Government impose such further conditions as may be necessary in the interests of mineral development, including development of atomic minerals (Mineral Concession Rules 1960).
15.
Sector: Mining and Quarrying
Sub-Sector: Mining of iron ores, Mining of metal ores, Mining of non-metallic minerals (other than Petroleum and natural gas)
Industry Classification: NIC: 12, 13, 15 ISIC: Q7, 08, 099
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.
Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.
Press Notes and Circulars on FDI Policy issued by the Central Government.
Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957 and all regulations/rules/orders issued thereunder.
Offshore Areas (Mineral Development and Regulation) Act, 2002 and all regulations/rules/orders issued thereunder.
Cess and Other Taxes on Minerals Validation Act, 1992 and all regulations/rules/orders issued thereunder.
Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.
Forest Conservation Act, 1980 and all regulations/rules/orders issued thereunder.
Description: FDI up to 100 percent is permitted on the automatic route in mining of non- atomic and non-fuel minerals subject to applicable laws and regulations including the MMDR Act, 1957.
Under the provisions of the MMDR Act, 1957, the reconnaissance or prospecting or mining operations can be undertaken only pursuant toa licence and consequent lease and no person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of reconnaissance permit or of a prospecting licence or, as the case may be, a mining lease, granted under MMDR Act and the rules made thereunder.
Government shall not grant reconnaissance permit, prospecting licence or mining lease to any person unless such person:
(a) is an Indian national, ora Company as defined in sub- section (1) of Section 3 of the Companies Act, 1956; and
(b) satisfies such conditions as may be prescribed.
Provided that in respect of any mineral specified in the First Schedule of the MMDR Act, 1957, no prospecting licence or mining lease shall be granted except with the previous approvals of the Central Government.
Explanation - For the purposes of this sub-section, a person shall be deemed to be an Indian national:
(a) in the case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and
(b) in the case of an individual, only if he is a citizen of India.
A State Government may either with the previous approval of the Central Government or at the instance of the Central Government impose such further conditions as may be necessary in the interests of mineral development, including development of atomic minerals (Mineral Concession Rules 1960)
The holder of a mining lease granted shall pay royalty in respect of any mineral removed or consumed by him/her or by his/her agent, manager, employee, contractor or sub-lessee from the leased area after such commencement, at the rate for the time being specified.
16.
Sector: Other Mining and Quarrying
Sub-Sector: Quarrying of stone, sand and clay
Industry Classification: NIC: 15 ISIC: 08, 099
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.
Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.
Press Notes and Circulars on FDI Policy issued by the Central Government.
Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957 and all regulations/rules/orders issued thereunder.
Offshore Areas (Mineral Development and Regulation) Act, 2002 and all regulations/rules/orders issued thereunder.
Cess and Other Taxes on Minerals Validation Act, 1992 and all regulations/rules/orders issued thereunder.
Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.
Forest Conservation Act, 1980 and all regulations/rules/orders issued thereunder.
Description: These are categorised as Minor Minerals under Section 3 of the MMDR Act, 1957. The State Governments have the powers to regulate operations of mining of minor minerals.
17.
Sector: Titanium bearing minerals and ores
Sub-Sector: Mining and production of Titanium ores (Ilmenite, Rutile, and Leucoxene) and Zirconium minerals (Zircon)
Industry Classification: NIC: 13 ISIC: 07, 099
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.
Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.
Press Notes and Circulars on FDI Policy issued by the Central Government.
Atomic Energy Act, 1962 and all regulations/rules/orders issued thereunder.
Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957 and all regulations/rules/orders issued thereunder.
Offshore Areas (Mineral Development and Regulation) Act, 2002 and all regulations/rules/orders issued thereunder.
Cess and Other Taxes on Minerals Validation Act, 1992 and all regulations/rules/orders issued thereunder.
Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.
Forest Conservation Act, 1980 and all regulations/rules/orders issued thereunder.
Description: FDI up to 100 percent is allowed with prior government approval in mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities, subject to sectoral regulations and the MMDR Act, 1957. The separation of titanium bearing minerals and ores will be subject to the following additional conditions:
(a) value addition facilities are set up within India along with transfer of technology;
(b) disposal of tailings during the mineral separation shall be carried out in accordance with regulations framed by the Atomic Energy Regulatory Board such as Atomic Energy (Radiation Protection) Rules, 2004; Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987.
No FDI is permitted in mining of prescribed substances as notified by the Department of Atomic Energy, under the Atomic Energy Act, 1962. Under the provisions of the MMDR Act, 1957, the reconnaissance or prospecting or mining operations can be undertaken only pursuant to a licence and consequent lease and no person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of reconnaissance permit or of a prospecting licence or, as the case may be, a mining lease, granted under the MMDR Act, 1957 and the rules made thereunder.
Government shall not grant reconnaissance permit, prospecting licence or mining lease to any person unless such person:
(a) is an Indian national, ora Company as defined in sub- section (1) of Section 3 of the Companies Act, 1956; and
(b) satisfies such conditions as may be prescribed.
Provided that in respect of any mineral specified in the First Schedule of the MMDR Act, 1957, no prospecting licence or mining lease shall be granted except with the previous approvals of the Central Government.
Explanation - For the purposes of this reservation, a person shall be deemed to be an Indian national:
(a) in the case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and
(b) in the case of an individual, only if he is a citizen of India.
A State Government may either with the previous approval of the Central Government or at the instance of the Central Government impose such further conditions as may be necessary in the interests of mineral development, including development of atomic minerals (Mineral Concession Rules 1960).
The holder of a mining lease granted shall pay royalty in respect of any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased area after such commencement, at the rate for the time being specified.
18.
Sector: Defence Industry
Sub-Sector:
Industry Classification:
Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)
Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.
Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.
Press Notes and Circulars on FDI Policy issued by the Central Government.
Arms Act, 1959 and all regulations/rules/orders issued thereunder.
Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.
Defence Procurement Policy of the Central Government.
Description: FDI in Defence Industry (manufacturing) Sector is subject to licensing under the Industries (Development and Regulation) Act, 1951 and also subject to following limitations:
(a) non-resident equity cannot exceed 26 percent
(b) There is a three year lock in period for transfer of equity from one foreign investor to another foreign investor (including NRIs and OCBs with 60 percent of more NRI stake) and such transfer would be subject to prior approval of the Foreign Investment Promotion Board (FIPB) and the Government.
(c) FDI shall be subject to policies made by the Government under the Industries (Development and Regulation) Act, 1951 from time to time.
(d) Treatment of Indian companies having FDI in terms of procurement of products shall be governed by the rules and procedures regulating procurement by defence services as may be issued or modified from time to time by Ministry of Defence, Government of India.
(e) FDI approval will be given by FIPB in consultation with Ministry of Defence.
(f) Licences will be given to Indian companies/partnership firms given by the Department of Industrial Policy and promotion in consultation with Ministry of Defence.
(g) The applicant should be an Indian company/partnership firm.
(h) The management of the applicant company/partnership should be in Indian hands with majority representation on the Board as well as the Chief Executive of the company/partnership firm being resident Indians.
(i) Full particulars of the Directors and the Chief Executives should be furnished along with the applications.
(j) The Government reserves the right to verify the antecedents of the foreign collaborators and domestic promoters including their financial standing and credentials in the world market. Preference would be given to original equipment manufacturers or design establishments, and companies having a good track record of past supplies to Armed Forces, Space and Atomic energy sectors and having an established R and D base.
(k) No minimum capitalisation for FDI purposes.
(l) The standards and testing procedures for equipment to be produced under licence from foreign collaborators or from indigenous R and D will have to be provided by the licensee to the Government nominated quality assurance agency under appropriate confidentiality clause.
(m) The licensing authority would Satisfy itself about the adequacy of the networth of the foreign investor, taking into account the category of weapons and equipments that are proposed to be manufactured.
(n) Capacity norms for production will be provided in the licence based on the application as well as the recommendations of the Ministry of Defence, which will look into existing capacities of similar or allied products.
(o) Purchase preference and price preference may be given to the Public Sector organisations as per guidelines of the Department of Public Enterprises.
(p) Arms and ammunition produced by the private manufacturers will be primarily sold to the Ministry of Defence. These items may also be sold to other Government entities under the control of Ministry of Home Affairs and State Government with the prior approval of Ministry of Defence. No such item shall be sold within the country to any person or entity. The export of manufactured items will be subject to guidelines as applicable to ordinance factories and defence public sector undertakings. Non- lethal items will be permitted for sale to person/entities other than the Central or state government with the prior approval of Ministry of Defence.
19.
Sector: All Services Sector
Sub-Sector:
Industry Classification: