Indian Govt Plan to Cap Foreign Investment in Courier Cos May Hit Roadblock
The government’s plan to cap foreign investment in courier companies may hit a roadblock. The commerce ministry is opposed to the foreign direct investment (FDI) related proposal in the Indian Post Office Amendment Bill, after severe opposition from industry. Commerce and industry minister Kamal Nath, who received a letter from the Investment Commission chief Ratan Tata on this issue, has decided to oppose the Bill’s intent to impose a cap on FDI in postal services. At present, there is no such cap.
Ratan Tata has requested that any move to impose limits on FDI in the postal sector must be opposed. Tata has said that a limit on FDI will not be in tune with the spirit of reform. Nath, in turn, is said to have noted that the commerce ministry must oppose this proposal too, in a reply that is now said to be with the Investment Commission.
