``FDI up to September-end from January this year was almost three billion US dollar. We will reach $ 3.5 billion (at the end of the year)...Almost same as last year,'' secretary in the department of industrial policy and promotion Ajit kumar, said here last night.

Kumar, speaking to reporters after participating in an interactive session organised by the Greater Mysore Chamber of Industry (GMCI), however, said industrial growth had lately picked up.

``We are happy about manufacturing and capitals goods segments, which are looking up....Cement had also looked up,'' he said, expressing hope that the steel sector would witness signs of higher offtake in view of infrastructure projects, especially road building area which was ready for contracting.

Asked about the industrial growth rate expectedthis fiscal year, Kumar said ``initially we were thinking of six per cent compared to three per cent last year.... But it seems it would go up to seven or eight per cent by February.''

Kumar said a common investment promotion board -- to take care of both FDI and domestic investment -- had been mooted by the department. ``The paperwork is complete. The approval process has to be gone through,'' Kumar said but hastened to add that the foreign investment promotion board (FIPB) would remain.

``FIPB remains.. There will be gradation of projects..Below certain level and above certain level,'' he explained. He said the Industrial Development Regulation Act, 1951, was being thoroughly revamped in order to make it harmonious with current globalisation and deregulation process.

The new act will be far more simple and transparent and aims more at removing all kinds of stipulations leaving the industry to operate in a free and market-oriented environment.

``We hope to finalise the new act in a couple of months.We are at the moment discussing the draft (of the new act) with apex chambers of industry. Very soon, it would be put through for cabinet approval,'' Kumar said.

Stating that the government would remove all obstacles and hurdles, which were on the path of FDI, Kumar hinted that more and more subjects and areas would be put under the ``automatic route,'' which did not require any approval.

``We are seeing if we can put more and more subjects and areas on the automatic route. We are also seeing if other sectors, which are subject to restriction now, can be put on automatic route. We are discussing with concerned ministries,'' he said.

Kumar said a Foreign Investment Implementation Authority (FIIA) had been set up, to assess and review the implementation proposals approved by the government.

FIIA has decided to set up a fast-track committee under each administrative ministry to review implementation of FDI-approved projects, he said, expressing hope that it would go a long way in generating the necessaryflow of FDI to different states.