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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
LOK SABHA
UNSTARRED QUESTION NO: 4459
ANSWERED ON:  08.05.2007
FDI IN TOBACCO
MEKAPATI RAJAMOHAN REDDY
Will the Minister of



COMMERCE AND INDUSTRY be pleased to state:-




(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?


ANSWER

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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