(a) whether the Government has decided to allow Foreign Direct Investment (FDI) in
Tobacco processing and cigarette manufacturing sectors in near future;
(b) if so, the details thereof;
(c) whether Tobacco producing States/growers have been consulted in this regard; and
(d) if so, the details thereof?
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ANSWER
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MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI ASHWANI KUMAR)
(a) & (b): Manufacture of cigarettes and cigars requires industrial licence under the
Industries (Development & Regulation) Act, 1951. Under the extant policy Foreign Direct
Investment (FDI) up to 100%, with prior Government approval, is allowed in the tobacco
sector for manufacture of cigars and cigarettes of tobacco products. There is no change
in the policy.
(c) & (d): The interests of all stakeholders are considered while formulating the
policy.
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