Maran assures hassle free climate for German investors

By Our Special Correspondent

NEW DELHI, OCT. 13. The Union Commerce and Industry Minister, Mr. Murasoli Maran, assured a German delegation that the Government would help remove the problems and procedural bottlenecks coming in the way of German investments into the country. He said the Government had widened the scope of the automatic route for foreign direct investment and was in the process of second generation economic reforms.

At an interactive session with German businessmen here prior to his visit to Germany early next month, the Minister said he would take up some of the issues raised at the meeting with his Cabinet colleagues soon. These included simplification of the tax structure, automotive policy, power projects and additional Lufthansa flights from Mumbai.

The delegation, led by the German Ambassador, Mr. Heimo Richter, included Dr. G. Krueger, executive director, Indo-German Chamber of Commerce (IGCC), and chief executives of over 20 companies such as Mercedes Benz, Deutsche Bank, Siemens and ABB.

Mr. Maran assured the delegation that his Ministry would focus on the medium-sized German companies for promoting investment inflows. A member of the delegation even suggested setting up a separate department for looking into investments from the medium- sized German companies and getting all the necessary clearances at one place. These companies preferred to invest in countries where they face ``least obstacles in terms of investment,'' it was pointed out.

The delegation also sought dropping of the withholding tax on services, simplification of excise and tax structure and a level- playing field for foreign operators in the automotive sector, according to Mr. A. P. Singha, spokesman of the IGCC.

Permission to foreign banks to open branches in the country and better coordination between the Central and State governments were the other issues raised at the meeting, the spokesman said.

The German Ambassador noted in his remarks that the continuity of economic reforms and upgradation of infrastructural facilities were the main factors for promoting German investments into this country.

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Section  : Business
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