Indian Govt. May Allow 50% Equity in State Tobacco Firms (fwd)

[Robert Weissman <rob@essential.org>]

Government considers 50 per cent
                       foreign stake in tobacco firms; rules
                       out majority stake
                       Business Standard, 30 Jun 1998


                            The industry ministry is considering a
proposal to allow foreign
                            investors to pick up 50 per cent equity stake
in the domestic
                            tobacco companies. While the final view on the
matter is yet to
                            be finalised, the ministry has ruled out
giving majority equity
                            stake to foreign companies in any tobacco
venture. 

                            The policy regarding foreign direct investment
in the tobacco
                            sector will be incorporated in guidelines to
be prepared in the next
                            two months. The government is also debating
whether or not to
                            delicence the industry that is at the moment
under the
                            compulsory industrial licensing regime,
disclosed government
                            sources.