Government today announced a revised Foreign Direct Investment Policy to inspire investor confidence. It simplifies joint venture norms and opens up new areas for overseas funds. The updated policy allows foreign firms in existing joint ventures to operate separately in the same business segment. Earlier, they needed prior approval from their Indian partners. Commerce and Industry Minister Anand Sharma said in New Delhi that the Companies have now been classified into two categories. First category includes the Companies owned or controlled by foreign investors and the second companies owned by Indian Residents. Earlier, categorisation of investing companies and investing-cum-operating companies has been done away with. Other steps in the new policy include allowing conversion of non-cash items like import of capital goods and payments of rent. Earlier, only royalty, lump sum fee and external commercial borrowings were allowed to be converted into equity.AIR correspondent reports that the policy has been revised after the foreign direct investment flows declined by 25 per cent in the current fiscal with 18.3 billion US Dollars worth investment coming from April to February.