With a view to removing an irritant for foreign investors, the government is likely to do away with rules that put an obligation, mainly on overseas oil firms, to disinvest part of their equity to Indian investors.
The Petroleum Ministry has agreed to the proposal of the Department of Industrial Policy and Promotion (DIPP) and it would be taken to the Cabinet along with the general review of the FDI policy in September.
"The obligation to disinvest has not served any great public purpose. In most of the cases, it ended up being a bureaucratic hassle for the foreign firms operating in India," a senior official said.
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