Welcoming the Centre’s decision to ease Foreign Direct Investment (FDI) rules across 15 sectors, industrialists from the city said the initiative would help industries create more job opportunities during the next 10 years.
Participating in roundtable conference on FDI organised by the Andhra Pradesh Chambers of Commerce and Industry Federation here on Tuesday, industrialists said the relaxations would benefit the infrastructure, construction, banking and single window retailing sectors. But it would not be beneficial for aviation sector because of restrictions imposed by the Directorate-General of Civil Aviation (DGCA).
According to C.T. Chowdhary, Director- Finance, LEPL, removal of two major conditions related to minimum built up area as well as capital requirement would boost the players in the construction industry. Federation Executive Director Potluri Bhaskar Rao said the relaxations must help Andhra Pradesh on a large- scale once the pace of construction of new capital at Amaravati begins shortly.
Speaking about banking sector, ICICI Bank Regional Head Khalid Mahmood said the mid size banks could raise funds from foreign investors for the expansion of banks network and improve the capital. Referring to single brand retailing, Profit Shoe Company Limited MD B.S. Koteswara Rao said retailers were worried over the impact of Centre’s move on FDI. Indian Retail Association was also planning to approach court over the decision.
Explaining in detail about the problems being faced by the aviation industry, Mr. Chowdhary said the FDI reforms would not be useful for regional carriers as the sector is regulated by the DGCA. To start catering service, the owners have to take permission from the DGCA. “We have to take permission from 14 Ministries for getting a no-objection certificate from DGCA,” he said.
