The Union Cabinet has relaxed FDI rule for foreign single brand retailers and also permitted foreign investment in contract manufacturing and coal mining. Commerce and Industry Minister Piyush Goyal said 100 per cent foreign direct investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.
To boost domestic manufacturing, 100 per cent FDI in contract manufacturing under automatic route has been allowed.
Further 26 per cent FDI has been allowed in digital media.
On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30 per cent domestic sourcing norm.
It also allowed single brand retailers to start online sales, waiving the previous condition of setting up a mandatory brick-and-mortar store.
The Cabinet Committee on Economic Affairs approved setting up of 75 government medical colleges to be attached with existing district or referral hospitals by 2021-22. The establishment of new medical colleges will add at least 15,700 MBBS seats in the country.
The new medical colleges would be set up in under-served areas having no medical colleges, with district hospitals having at least 200 beds.
The establishment of new medical colleges, to be attached with existing district and referral hospitals, would lead to an increase in the availability of qualified health professionals, improve tertiary care in government sector, utilise existing infrastructure of district hospitals and promote affordable medical education in the country.
The CCEA also approved a Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the 2019-20 marketing year starting October in order to liquidate surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers. A lump sum export subsidy of Rs 10,448 per tonne will be given to sugar mills in the 2019-20 marketing year (October-September). This will benefit millions of farmers in Uttar Pradesh, Maharashtra and Karnataka as well as other states.
The government is providing subsidy for export of 5 million tonnes of sugar for the current 2018-19 marketing year.