INDIA BUSINESS WORLD - May 11th - MAY 31st - 2008
18 FDI PROPOSALS RECEIVE GOVERNMENT NOD, 14 FDI PROPOSALS WORTH RS 826 CR GET FIPB NOD
THE government has approved 18 foreign direct investment (FDI) proposals totalling Rs 1,820.24 crore, including Manipal Educational Group’s plan to induct foreign investment of Rs 1,435 crore in a holding company. The Foreign Investment Promotion Board (FIPB) also cleared Mauritius-based Indivision India Partners’ proposal to invest foreign equity worth Rs 120 crore in a company engaged in merchant banking and other non-banking finance activities.
A proposal of Swedish auto major Volvo to invest Rs 123 crore for an 8.1% stake in the proposed joint venture with Eicher Motors also received the green signal from the FIPB. However, another Volvo proposal has been referred to the Cabinet Committee on Economic Affairs (CCEA), as the investment involved is above Rs 600 crore.
Vodafone Essar also got approval to convert its operating company into an operating-cum-holding company to make downstream investment in a company engaged in telecom infrastructure.
However, the proposals of realty firm DLF Limitless Developers and software giant Pepsi India were deferred by the FIPB. DLF Limitless Developers had sought approval to issue shares in lieu of pre-incorporation expenses, while Pepsi India wanted the government to waive the divestment condition which required it to offer a part of equity stake to Indian shareholders.
The government has also cleared 14 FDI proposals worth Rs 826 crore, including a Rs 278-crore proposal from Havells India. The Noida-based electrical appliances company had sought foreign investment promotion board’s (FIPB) approval for issue of shares and warrants convertible into shares.
The FIPB rejected a proposal from US-based auto component major Federal Mogul to set up a new wholly-owned subsidiary to undertake manufacturing, distribution and sale of sealing products and gaskets.
The FIPB also approved Laqshya Media’s proposal for induction of foreign equity of Rs 276.25 crore through allotment of equity shares and conversion of warrants into equity shares. The Board cleared Mumbaibased Fox Star Studios’ plan for induction of foreign equity up to 100% in a domestic company for production of movies. This proposal would bring in foreign investment of Rs 9.9 crore. The Board deferred 13 proposals including those of DLF Limitless Developers. DLF has formed a joint venture with Dubai-based Limitless for developing a township in Bangalore with estimated investment of Rs 60,000 crore.
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