New Delh:Finance minister P. Chidambaram said on Wednesday that the foreign investment proposal will continue to be cleared despite model code of conduct coming into effect and upcoming general elections.
Finance minister said that there are “misconceptions” about what a government can or cannot do when the code of conduct is in force. He informed that the process started by the Reserve Bank of India (RBI) on issuing new bank licenses would not be affected by the code of conduct.
“Foreign Investment Promotion Board (FIPB) will continue to meet. FIPB will continue to take decisions. These are normal business functions,” said Mr Chidambaram.
He said that the cabinet meetings will take place right up to the end. “Cabinet meetings will take place. Cabinet will clear proposals based on decisions on policies announced earlier. Normal government functioning will take place,” he said.
He said that there are some restrictions placed by the Election Commission. “There is a code of conduct. We will observe that. But nowhere does the Election Commission say that the government functioning should come to a halt,” he said.
On banking licences finance minister said, “What the code of conduct has got to do with this (bank licence process). The government and regulators are discharging their normal duties... They (RBI) wish to issue a few licences. And that’s the indication we have got. We are not interfering with that process, that is the RBI’s decision.”
