Amid opposition from several ministries, the Union Cabinet will take up proposals for increasing the foreign direct investment limits in a number of sectors this week. The sectors include aviation, telecom, insurance and petroleum.

"The proposals were cleared by the group of ministers before the Budget for 2003-04, but the Cabinet has not been able to discuss them so far. They are on the agenda for this week's meeting," a senior government official said.

The group of ministers had recommended raising the foreign investment limit in some sectors at its last meeting on February 27.

The civil aviation, biotechnology, mining, small-scale industry, and information and broadcasting ministries had opposed the recommendations made by the steering committee on foreign direct investment headed by Planning Commission Member N K Singh.

Proposals for higher foreign investment limits in private banks and in the direct-to-home segment for news channels have been cleared by the government. In the trade and small-scale segments, the government has decided to bar foreign investment for the time being.

Government officials said several ministers were opposed to permitting higher foreign investment, and might raise the 'swadeshi' issue at the Cabinet meeting.

At the meeting of the Cabinet Committee on Divestment last week, some ministers opposed the economic policies of the government, they added.

"However, we expect the proposals to be cleared because the ministers against the move are outnumbered by those in favour of further liberalisation," a government official said.

The group of ministers, headed by Finance Minister Jaswant Singh, had recommended increasing the foreign investment limits for these sectors on the basis of the recommendations of the steering committee.

The finance ministry then cleared a proposal to raise the limit in the insurance sector from 26 per cent to 49 per cent. The hike will necessitate amendments to the Insurance Act, 1938.

The group of ministers had recommended raising the investment cap in the aviation sector to 49 per cent from 40 per cent, in addition to permitting foreign airlines to acquire stake in domestic carriers.

However, the civil aviation ministry has opposed the latter. The ministerial panel also decided to permit 100 per cent foreign direct investment in airports.

The foreign direct investment ceiling in telecom services -- fixed line and mobile telephony -- was proposed to be hiked from 49 per cent to 74 per cent, with full voting rights to foreign investors.

The group of ministers also recommended 100 per cent foreign direct investment for Internet service providers without gateway, e-mail and voice-mail, instead of the 49 per cent cap.

The panel has recommended 100 per cent foreign direct investment in oil refining ventures in the private sector, as well as in oil marketing and exploration, where the caps are at 74 per cent and 60 per cent, respectively.