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NEW DELHI: In a move that comes as a big boost to foreign companies looking to invest in sectors reserved for small scale units, the government plans to scrap the mandatory export obligation imposed on such investments. As of now, FDI in sectors reserved for SSIs is permitted only if the company concerned agrees to export 50% of the production.

As many as 114 items are reserved for SSIs and the list includes expresso coffee maker, electric kettle, chemicals, dyes, PVC footwear, pens and steel items. Foreign investors have been demanding that export obligation on investment in these areas should be scrapped.

The SSI department has discussed the issue with the department of industrial policy & promotion (Dipp), senior government officials said. While there is unanimity on the need to scrap the mandatory export obligation, the modalities are yet to be decided. The government wants to avoid political criticism while going ahead with the liberalisation, they added. Read more

NEW DELHI: India’s trade deficit grew by 45 percent in May to 6.21 billion dollars compared with last year as imports leapt thanks to a rapidly growing economy, according to data released on Monday. The deficit, which was swelled by non-oil goods, was up from 4.26 billion dollars in the same month in 2006. Imports climbed by 26.4pc to $18.07bn in May from a year earlier while exports jumped 18pc to $11.86bn, data showed. Imports have been climbing on the back of a fast-expanding economy. India’s economy posted 9.4pc growth in the last financial year to March.

PSO inks MoU with KAPCO

By our correspondent

KARACHI: The Pakistan State Oil (PSO) on Monday signed a memorandum of understanding (MoU) for fuel supply with Kot Addu Power Company for its planned 400-500MW expansion of Read more