INDIA BUSINESS WORLD - APRIL 1st - APRIL 15th - 2008
NOD FOR 20 FDI PROPOSALS OF RS 1,962 CR
The government has cleared 20 foreign direct investment (FDI) proposals worth Rs 1,962.05 crore, including a Rs 924-crore deal involving UTV Software Communications. The proposals, approved by the Foreign Investment Promotion Board (FIPB), also include a proposal from cement manufacturer Lafarge India for merger of Lafarge India Holding Pvt Ltd with Lafarge India Pvt Ltd.
UTV Software Communications’ proposals would bring in Rs 923.94 crore through sale of equity in UTV Software and warrants of UTV Global. The FIPB has also approved Italybased marquee brand Giorgio Armani’s proposal to set up a JV with 51% foreign equity to undertake single brand retail trading of the Armani branded products.
The FIPB has, however, deferred its decision on eight FDI proposals, including Singapore-based Delight Investments offer to invest in a Hindilanguage newspaper group.
The board has recommended a proposal by Essar Power and Axis Pvt Equity to the Cabinet Committee on Economic Affairs.
PSA India Pte Ltd, Singapore’s proposal for induction of foreign equity up to 49% for Rs 240 crore by way of preferential allotment of compulsorily convertible preferential shares has also been approved. The FDI proposal of Mauritius-based GS Strategic Investment Ltd to induct foreign equity up to 20% in a company engaged in commodity broking was approved.
However, the FIPB has rejected proposal of Kim Eng Securities to undertake stock-broking activities as a non-fund based activity. It has also rejected Meta Telecom’s proposal to increase foreign equity from 40% to 73.45% in a company engaged in international long distance services.
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