Government Drafting Security Law For FDI

Concerned over the origin and destination of some foreign investments, the government is reportedly working on a proposal to bring in a security-related law on foreign direct investment (FDI).

Speaking to reporters after a CII meeting in New Delhi, Commerce Minister Kamal Nath said that there were some areas of FDI in certain sensitive sectors where there were concerns on the origin and destination of investments. Meanwhile the Bill has been named as the National Security Exception Bill is in its formative stages

Earlier National Security Advisor MK Narayanan had raised the issue of Egyptian mobile company Orascom's indirect stake holding in Hutchison Essar, and sought an overall security policy for sensitive sectors that involved foreign participation.

Apart from FDI, the proposed Bill will govern participation of foreign firms in global tenders floated by public sector companies and government departments.