Sep 30, 2021

Review of Foreign Direct Investment Policy on Petroleum & Natural Gas Sector

As per the Consolidated Foreign Direct Investment (‘FDI’) Policy Circular of 2020, foreign direct investment upto 49% is permitted under the automatic route for petroleum refining by the public sector undertakings (‘PSUs’), without any disinvestment or dilution of domestic equity in the existing PSUs. The Government of India has by way of Press Note 3 (2021 Series) dated July 29, 2021 amended the aforementioned by allowing foreign investment up to 100% under the automatic route in case an ‘in-principle’ approval for strategic disinvestment of a PSU has been granted by the Government. The Press Note will be effective from the date of FEMA notification, which is yet to be issued.




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