History

Proposals for foreign investment were considered by the Foreign Investment Promotion Board (FIPB), initially under the PMO. The recommendations of the FIPB were approved through a 3-tier approval mechanism viz. FIPB as a committee of senior officials to examine and make recommendations; Empowered Committee on Foreign Investment (ECFI) chaired by the Finance Minister for deciding on the recommendations of the FIPB for projects in which the total investment in the project was up to Rs. 300 Crore and the Cabinet Committee on Foreign Investment (CCFI) for deciding on the recommendations of the FIPB for projects in which the total investment was more than Rs. 300 Crore.
With the transfer of FIPB to Department of Industrial Policy & Promotion in 1996, the Board was reconstituted with the approval of the Cabinet. A copy of the constitution of the FIPB was notified on 11.07.1996.The constitution of the FIPB also laid down the Approval levels as under:
i.    Recommendations of FIPB in respect of the project proposals each involving a total investment of Rs. 600 Crore or less would be considered and approved by the Industry Minister.
ii.    The recommendations in respect of the projects each with a total investment of above Rs. 600 Crore would be submitted to the Cabinet Committee on Foreign Investment (CCFI) for decision.
iii.   The CCFI would also consider the proposals which may be referred to it or which had been rejected by the Industry Minister.
The FIPB was transferred to the Department of Economic Affairs; Ministry of Finance in terms of the Presidential Order dated 30.01.2003. The levels of approval, notified vide Order dated 11.07.1996 were essentially retained, except to the extent that recommendations of FIPB for project-proposals involving a total investment of less than Rs. 600 Crore would be considered and approved by the Finance and Company Affairs Minister and those with a total investment beyond Rs. 600 Crore would be submitted to the Cabinet Committee on Economic Affairs for decision.
The Foreign Investment Promotion Board (FIPB) was reconstituted vide OM No. 1/3/2003-FIU dated 18.02.2003 and transferred to the Department of Economic Affairs (DEA), Ministry of Finance.
The FIPB considers proposals for Foreign Direct Investment (FDI) within approved policy parameters. The members of the Board are:
Secretary to the Government of India, DEA, Ministry of Finance - Chairman
Secretary to the Government of India, Department of Industrial Policy and Promotion (DIPP).
Secretary to the Government of India, Department of Commerce (DoC).
Secretary to the Government of India (Economic Relations), Ministry of External Affairs (MEA).
Secretary to the Government of India, Ministry of Overseas Indian Affairs (MOIA).
The Board may co-opt other Secretaries to the Government of India and officials of financial institutions, banks and professional experts in industry and commerce, when required. The Secretary to the Government of India, Ministry of Small, Medium and Micro Enterprises and the Secretary to the Government of India, Department of Revenue have been co-opted on the Board.[For more details click here]
As per the Allocation of Business Rules, (i) the administration and implementation of the FEMA Act, Rules and regulations, other than enforcement work mentioned under the Department of Revenue, and all matters relating to combating financing of terrorist acts; (ii) Foreign and Non-Resident Indian Investment excluding functions entrusted to the Ministry of Overseas Indian Affairs and Direct Foreign and Non-Resident Indian Investment in Industrial and Service projects; and (iii) Foreign Investment Promotion Board are allocated to Department of Economic Affairs, Ministry of Finance. However, the subject of ‘Direct Foreign and Non-Resident Indian Investment in Industrial and Service projects’ has been allocated to Department of Industrial Policy and Promotion (DIPP). Hence, the policy related to direct foreign investment is looked after by DIPP.

Fact Sheet (February 2003 - December 2009)
The details of the proposals considered and approved by FIPB from February 2003 to December 2009 are given below