Indian refining sector to allow 100% foreign investment

The Indian petroleum refining sector has opened to full foreign investment, as the cabinet has decided to allow 100 % foreign direct investment (FDI).Foreign investment in the oil-refining sector is currently confined to 49 %, making it obligatory for investors to take an Indian partner.
Under a cabinet decision, foreign investors in the petroleum refining sector above this limit will not be required to take any clearances from the foreign investment promotion board (FIPB). They have only to notify the country's central bank, the reserve bank of India. The 100 % FDI limit is now permitted in several of India's infrastructure industries.

Leading multinationals like Shell, Exxon and BP have been waiting for liberalisation in the oil sector to take investment decisions on expanding their activities in India. A section of the main ruling party has criticised the liberation decision. The Swdeshi Jagran Manch, which is associated with the Bhartiya Janta Party, the main ruling party has said that this goes against the spirit of domestic self-reliance.
The spokesman of the group, Mr. S. Gurumurthy, said: "There was no need to remove FDI caps in power and refining sectors. There does not seem to be any coherence in the announcement of policy."