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Govt defers decision on hiking FDI ceiling

The government, on Wednesday, deferred a decision on hiking the ceiling of foreign direct investment in telecom, insurance and civil aviation sectors.

The proposal came up for discussion at a Cabinet meeting presided by Prime Minister Atal Bihari Vajpayee as part of the government's efforts to woo FDI, an official spokesperson told reporters in New Delhi.

The Cabinet also put off a decision on introducing voluntary retirement scheme in oil PSUs -- Oil and Natural Gas Corporation and Bharat Petroleum, she said.

The spokesperson said the government would "reconsider" these issues and bring it back to the Cabinet later.

With a view to attract $8 billion FDI annually during the Tenth Plan period, a Steering Committee chaired by Planning Commission member N K Singh had earlier this month recommended liberalising investment norms significantly, including raising the ceiling in crucial telecom, civil aviation, petroleum and insurance sectors.

The committee had recommended eliminating FDI caps in advertising, banking, real estate and raising the limit in telecom, civil aviation, broadcasting, insurance and plantation.

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