NEW DELHI, JAN 20: The government has liberalised further the technology import regime by expanding the automatic approval list. So far only 60 per cent of technology imports could be done through the automatic route.The cabinet committee on economic affairs (CCEA) which met here on Wednesday decided that the automatic approval route for technology imports based on the standard parameters would continue. Projects, both public and private, appraised and funded by financial institutions would be allowed to import technology through the automatic approval route without any restrictions.Under the new regime, public sector undertakings will also be allowed to import technology through the automatic route without restrictions on payment terms mutually agreed provided such projects have been approved by the competent authority and the payment terms are certified by the chief executive of the undertaking.Private sector companies would also be permitted to import technology through the automatic route if thecompany has been in existence for five years, earned profits and paid dividends at least during last three years and fulfils other conditions which may be evolved and notified by Department of Industrial Policy and Promotion.Financial institutions would be required to maintain panels of experienced technical consultants for appraising techno-economic viability of the imports sought. Hundred per cent subsidiaries of foreign companies would not be allowed to pay royalty to their principals abroad.A negative list of technologies detrimental to national interest in terms of public safety, health and environmental considerations would be prepared by the department of industrial policy and promotion in consultation with the concerned ministries and notified.Other CCEA decisions included approval of an expenditure of Rs 261 crore for national child labour projects during the Ninth Plan period from 1997-98 to 2001-2002. Ex-post facto approval of expenditure of Rs 72.90 crore under the scheme during theEighth Plan as against an outlay of Rs 15 crore was also given.CCEA also approved replacement of four NGO schemes by a revised umbrella scheme entitled "scheme to promote voluntary action for persons with disability" during the Ninth Plan with total outlay of Rs 216.94 crore.The committee also approved the continuation of Maulana Azad Education Foundation scheme in the Ninth Plan and release of an annual grant-in-aid equivalent to the interest income to be earned on Rs 30 crore by the foundation with an overall ceiling on corpus fund of Rs 100 crore. Ex post facto release of Rs 40 crore made to the foundation in 1997-98 was also approved.The Cabinet, which also met on Wednesday, decided that specialists in medical or scientific fields who attained the age of superannuation on or before May 1, 1998 and were on extension in service may be granted further extension beyond the extended period but in no case beyond the age of 62 years.Free Of Restrictions Projects appraised and funded byFIs permitted tech imports through automatic approval route without restrictions PSUs allowed tech imports without curbs on payment terms 100% subsidiaries of foreign cos will not be allowed to pay royalty to principals abroad FIs to maintain panels of technical consultants for appraising techno economic viability of imports
