As per industry sources, the government has initiated review of foreign fund flows in the telecommunications and physical infrastructure sectors at strategic locations of the country.
As part of this exercise, a comprehensive examination has been undertaken to assess the control over various infrastructures at strategic locations and border areas of the country.
The idea behind this move is that since majority of the industries now source foreign direct investment (FDI) under automatic route instead of the approval route, it is required to have an idea on the foreign presence in these areas including the north-eastern region.
Many departments and agencies, including the Reserve Bank of India (RBI), have been involved in the exercise.
In addition, the RBI is also examining the need for greater scrutiny of the FDI coming through the automatic route where companies are only required to inform the regulator about the fund flow within a stipulated time.