India’s move to buy foreign assets from foreign companies has sparked debate in the country’s business community.
But experts say the country has the capacity to do more, with new rules that allow foreign companies to take on state-owned stakes in mines and railways.
The move, which could take a decade to implement, will also be seen by some as a signal to the world that India is open for business.
India’s new rules for foreign ownership of state-controlled companies in mines, railways and oil and gas companies come into force on Jan. 1.
The country has about 1,000 publicly owned mines and railroads, and is developing several others in areas where it has not yet established its own industries.
The new rules allow foreign firms to take stakes in stakes in coal-fired power plants, coal mines, oil- and gas-based companies and oil-based petrochemical firms.
India is also considering setting up an international bank that would lend to the firms.
The country’s coal-intensive industries are also at the center of the debate.
In a bid to boost foreign investment in the sector, the government last year introduced a new set of rules to allow foreign-owned companies to get a 5% stake in Indian mines, the first time such a stake has been allowed since 2008.
Foreign companies can now take up to 50% of shares in coal mines and oil companies, or 75% in railway and gas plants, or 40% in power companies.
The stakes can be held for up to 10 years.
Foreign investors are allowed to invest as much as $5 billion, up from the current limit of $3 billion.
They will also have to offer an alternative plan for their stake in the mines or power companies if a new mine or power plant is proposed.
The decision to sell stakes in existing mines comes at a time when Indian companies are looking for new opportunities, such as new technologies that have yet to be developed.
India also wants to attract foreign investments and is looking to buy some of its foreign assets to help the country achieve its economic goals, including boosting growth and expanding its services sector.
The government has been investing heavily in infrastructure projects, including highways, ports and airports.
In the last few years, India has built a massive railway network in the state of Maharashtra, where many of the world’s major coal-producing mines lie, including the Gautam Budh Nagar-Maharashtra.
India also recently built a railway line from Mumbai to Agra, linking two of the biggest cities in the world.