NEW DELHI: The Indian Government has liberalized the foreign direct investment policy, opening new areas like commodity exchanges, credit information and aircraft maintenance for overseas investors while enhancing the ceiling in public sector oil refineries.

While putting a number of areas on automatic route, particularly in the civil aviation sector, the amended policy allows 100 per cent FDI in maintenance, repair and overhauling (MRO) facilities for aircraft as also aviation training units, Information and Broadcasting Minister Priya Ranjan Dasmunsi said at a briefing on decisions taken by the Cabinet.FDI up to 100 per cent has been permitted in the mining of titanium bearing minerals and foreign investment up to 49 per cent has been allowed in credit information companies.

The permission of the Reserve Bank of India will be required for FDI in credit information firms.The new policy has done away with compulsory divestment of 26 per cent equity in fuel and gas trading ventures, a move that could provide relief to companies like British Gas.Hitherto, 100 per cent FDI was allowed through the automatic route on the condition that 26 per cent equity in such ventures be divested in favor of an Indian partner within five years.

The government raised FDI in public sector refineries to 49 per cent from the current 26 per cent. A few months back, the government had made a one-time exception to allow steel baron Lakshmi Mittal to pick a 49 per cent stake in HPCL's Bhatinda refinery. Giving a boost to industrial estates, the Cabinet has also decided to exempt foreign investors from certain regulations like minimum capitalization and lock-in period of three years.

In construction development projects, the investment by registered FIIs under the portfolio investment scheme would be treated distinct from FDI.The FII investment would thus be outside the purview of certain restrictions applicable to FDI. However, the government would give detailed clarification later.

"The approval would help in higher FDI inflows through liberalization of the FDI policy and reduction of levels of approvals, which are no longer worthwhile," Dasmunsi said.In commodity exchanges, the foreign investment ceiling of 49 per cent has been divided between FDI - up to 26 per cent and Foreign Institutional Investors - 23 per cent.

This would also be subject to a single investor not holding more than five per cent stake.India has three main commodity exchanges at the national level. These are: Multi Commodity Exchange, National Commodity and Derivatives Exchange and National Multi Commodity Exchange of India. Besides there are 20 regional exchanges.

For the credit information services, FII investment up to 24 per cent in the listed firms would be permitted within the 49 per cent ceiling.With the deepening of India's financial market, the firms running the credit bureau would be in great demand as the data base with banks and intermediaries is grossly inadequate, experts feel.

Considered as one of the most favourite investment destinations, India has been witnessing a big rise in FDI which totaled over 15 billion dollars in 2007-08. It is expected to touch 30 billion in the current fiscal.