Though no time-frames have been fixed for clearing proposals, the FIPB has decided that if a proposal conforms to the policy guidelines, approval would be granted without waiting for comments of the administrative ministries.All FDI proposals received by the secretariat of approvals in the industry ministry are forwarded to the concerned administrative ministries for their comments. Normally, the FIPB clears a proposals only after receiving the comments of the concerned ministries.

This system led to delays in many cases as ministries often ask for deferment of theproposals ranging between a week to even more than a month.At its meeting on September 27, the FIPB cleared the proposal of Zurich Insurance seeking an amendment to its foreign investment approval granted in June 1999 despite the request of the department of economic affairs to defer the proposal on the ground of future policy on capitalisation.

Munich Reinsurance Company was the other case to be approved even though the department of economic affairs sought a deferment of the proposal on the grounds that it wanted to consult the insurance department. The FIPB came to the conclusion that since no insurance-related business had been proposed by the company, the case should be cleared.

At least four proposals were approved in the absence of the concerned administrative ministries. A proposal relating to induction of 74 per cent foreign equity by Hybeck Holding of UK in a books publishing company Minerva Press (India) was cleared though the department of economic affairs was not present at the FIPB meeting.A similar case of Indo Canadian Academy was also approved in the absence of the department of education.

Leaf Parrys Ltd's proposal seeking a change in the name of its foreign collaborator and SMS Potato Processors' proposal to allot shares to a foreign company for purchase of capital equipment were also cleared by the FIPB in the absence of the ministry of food processing.