Major Functions:

1. On the investment front, all proposals for foreign direct investment which are not on the automatic route are processed and put up for approval of FIPB.
2. To facilitate investment abroad, negotiations are undertaken for signing Bilateral Investment Protection and Promotion Agreements .This provides a congenial atmosphere for Overseas Indian investments and facilitates repatriation of profits back home.
3. The foreign investment unit examines sectoral policy issues with respect to other ministries too.
4. Foreign Exchange Policy aspects relating to Import/Export gold/silver.

SECTION- WISE ALLOCATION OF WORK

Investment - Broad categorisation into different sections is as follows:-

1. FIPB-Facilitation Counter
2. FIPB-I
3. FIPB-II
4. FIU (Foreign Investment Unit)
5. International Investment Agreement Section
6. Foreign Trade Section
7. Domestic Investment Section

FIPB

The FIPB unit receives and processes the applications/proposals for foreign investment and places them before FIPB for consideration. Thereafter, it submits the recommendation of the Board to the Minister of Finance or CCEA, as the case may be, for decision. This unit is also responsible for communicating to the applicant the decisions of the Government on their proposals and carries on the activities relating to post-approval amendment, providing advice and guidance to the entrepreneur and investors and investment promotion and facilitation. FIPB Unit also maintains the FIPB internet portal for online filing of applications. It also publishes an Annual Review highlighting the major decision and issues handled by FIPB. FIPB Unit has been categorized in three parts, namely, (i) Facilitation Counter, FIPB-I, and FIPB-II. Work allocated to each of them is as under:-

FIPB Facilitation Counter

1. Receipt of all fresh and amendment FDI proposals and registration thereof.
2. Circulation of registered fresh FDI proposals to all permanent FIPB members and Administrative Ministries inviting their comments. The Administrative Ministries are identified on the basis of activities of the Indian Company.
3. Transfer of all such proposals to FIPB Units.
4. To attend to the queries of all Investors regarding their applications.
5. Scrutiny of proposals received by Dak and to call for additional information/necessary information from the applicant.

FIPB-I

Functions:

1. FDI policy including clarification on policy related matters
2. Scrutiny of fresh applications/proposals and preparation of summary thereon for FIPB
3. Preparation of agenda for FIPB meetings
4. Posting of agenda on the website
5. Preparation of minutes of FIPB meetings
6. Issue of Press Release on receipt of approved minutes.
7. Posting of Press Release on website, on receipt of approved minutes
8. Circulation of FIPB minutes
9. Preparation of CCEA Note for seeking approval of CCEA based on FIPB recommendations, where required.
10. Follow up action on cases deferred by FIPB
11. Servicing of GoM on FDI and preparations/circulation of Cabinet/GoM notes on FDI policy.
12. Submission of all periodical reports
13. Preparation of summary/briefs for interaction of Senior Officers/ Hon’ble Minister with the investors in respect of fresh proposals.
14. Parliament Questions
15. Issue of approval/rejection, in respect of fresh proposals, as per approved minutes of the FIPB.
16. Facilitating disseminating relevant/case specific information to the concerned Ministries/Department for preparation of replies to the Parliament Questions.

FIPB-II

Functions:

1. Issue of approvals/rejections in respect of amendment proposals as per approved minutes of the FIPB
2. Circulation of amendment proposals
3. Scrutiny and examination of cases
4. Preparation of briefs/notes for consideration of FIPB on amendment proposals
5. Interaction with companies for documentation
6. Preparation of summary/briefs for interaction of Senior Officers/ Hon'ble Minister with investors in respect of amendment proposals.
7. Preparation of CCEA Note for seeking approval of CCEA based on FIPB recommendations where required
8. Parliament Questions
9. Facilitating of disseminating relevant/case specific information to the concerned Ministries/Departments for preparation of replies to the Parliament Questions

Foreign Investment Unit (FIU)

Functions:

1. FDI Policy including FDI Policy clarifications & related matters.
2. Comments of FIPB proposals from policy angle including guidelines.
3. Follow up of recommendations of Investment Commission.
4. Foreign Investment in the NBFC Sector.
5. National Productivity Council.
6. It also has Sectoral charge of the following Ministries/Departments (with regard to policy matters ) -
   1. Foreign Exchange Policy aspects relating to Import/Export
   2. Ministry of Overseas Indian Affairs,
   3. Department of Public Enterprises
7. List of Guard Files which are maintained by the section are as below:
   1. Parliament Questions (Rajya Sabha & Lok Sabha) and
   2. FIPB proposals.
8. FIU Section do not administer any Law/Acts

International Investment Agreement Section

Functions:

• Negotiation and conclusion of Bilateral Investment Promotion & Protection Agreements (BIPA) with other countries
• Nodal responsibility in relation to assistance in establishing various industries in foreign countries.
• Setting up of Joint Ventures and Subsidiaries abroad - Policy and briefs on individual cases considered in the Special Committee on Investment abroad.

List of countries with whom bilateral investment promotion and protection agreements (BIPA) has been signed (as on December, 2013)

Notice relating investor dispute under the relevant provisions of the BIPAs/BITs may be served to:-

Foreign Trade Section

Functions:

• Foreign Exchange aspects relating to Import/Export of gold/silver. Policy matters related to Gold Monetisation Scheme (GMS) & and Indian Gold Coin (IGC).
• Inputs related to Comprehensive Economic Cooperation Agreement (CECA), etc. negotiated under the aegis of Ministry of Commerce & Industry with various countries and regional blocs.
• Providing advice to Department of Commerce from financial angle in matters relating to project Export on deferred Payment Terms, Border5 Trade, Project Export Guidelines etc. Providing advice to Department of Commerce from financial angle in matters relating to SEZs/EPzs
• Sectoral Charge of Ministry of Commerce
• Export & Import Policy, particularly the foreign exchange aspects thereof, matters related to countertrade , matter relating to deemed Exports, including issuance of Notification/Public Notices in terms of its provisions of EXIM Policy
• Agreements with countries in Asia (excluding SAARC) and Africa and providing of inputs on cooperation in financial sectors for the meetings of the joint commission.
• Matters relating to meetings of Trade and Economic Relation Committee (TERC).
• Policy issues related to Overseas Direct Investment.

Domestic Investment Division

Functions:

• All policy issues related to investment (except foreign investment), including industrialization, manufacturing sector and innovation.
• Examining all policy proposals related to Ministry of Mines, Ministry of Steel, Ministry of MSME, Ministry of Heavy Industry, Ministry of Textiles, Department of Electronics and Information Technology, Department of Chemicals and Peetro-Chemicals, Department of Fertilizers and Department of Pharmaceuticals.
• Policy issues related to integrated Township, Industrial Park and Manufacturing Clusters.
• Financing and regulatory issues related to Manufacturing Sector and MSMEs
• National Manufacturing Policy & National Investment Manufacturing Zone.
• National Manufacturing Competitiveness Council (NMCC)
• Works relating to ‘National Investment and Infrastructure Fund’ (NIIF).