FDI In Paper And Packaging— Procedure, Fees, Documents Required

Components Permitted Under FDI In Paper And Packaging Sectors

Many documents are required for FDI in the paper and packaging sector which are as follows:

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

There are conditions tapping for the procedure of FDI approval which must be understood by investors.

Following are the key advantages which has been derived for investors while investing in paper and packaging sectors in India:

1. Increasing Demands - Growing investments in the food processing, personal care, and pharmaceutical industries have offered new potential for packaging industry growth. By 2025, 40% of Indians will live in cities, up from 31% in 2010, which would result in a rise in the country's consumption of packaged foods and fast-moving consumer goods.
2. Competitive Advantages - In terms of value, $3179.24 Mn of paper, paperboard, and newsprint were shipped in 2021-22, compared to $1940.94 Mn the previous year. This resulted in an increase in national growth of around $1238.30 million, or 63% growth.
3. Policy Support - The government of India initiated 2 schemes— one is PAT and another REC-mechanism
   1. Perform, Achieve and Trade (PAT) is a market-based system that aims to improve cost effectiveness by certifying surplus energy savings that may be exchanged. It is a regulatory tool designed to minimize Specific Energy Consumption (SEC) in energy-intensive businesses.
   2. In addition to helping purchasers fulfill their RPO, the REC system advances innovative renewable technologies. Trading RECs in order to benefit from the difference between the purchase and sell prices is known as REC swapping.

1. Easy Market Access - FDI in the paper and packaging industry can help the investing company to get easy access from the host country as it provides a vast multitude of opportunities in one combination of markets.
2. Cost- effectively - Paper and packaging industries get the investing company and the host country an opportunity to enter into cost- negotiation that helps both countries to build their empire in the global market.
3. Resource Acquisition - FDI in paper and packaging industry helps to expand raw material resources as well as finished goods in both domestic and international market so that there’s no chain breaking supply trade in the global market
4. Transfer Of Technology - Technology transfer can help the host country to upbeat the next level game in the economy, providing assistance to transfer technology beyond the nation’s boundary.

FDI in the paper and packaging industry is an essential unit to take steps forward to combat plastic choking. While host nations profit from economic expansion, the creation of jobs, and maybe access to more sophisticated technology, foreign businesses get access to new markets and potentially less expensive resources. In this resource-intensive sector, it is crucial to guarantee responsible investment that supports sustainable practices and prevents environmental deterioration.

Several other factors to consider for investors while investing in heavy industries are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.

Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.