Govt clears 14 FDI proposals worth Rs1,290 crore

Govt clears 14 FDI proposals worth Rs1,290 crore

New Delhi: The government on Wednesday approved 14 proposals of foreign direct investment (FDI), including that of Mauritius based Ghir Investments, totalling Rs1,289.85 crore.

The Foreign Investment Promotion Board (FIPB), however, deferred decisions on 27 proposals, including that of Essar Capital Holdings and Forbo Holding AG, Lindenstrasse, Switzerland.

“Based on the recommendations of FIPB...Government has approved 14 Proposals of FDI amounting to Rs1289.855 crore," an official statement said.

The FIPB, which falls under the finance ministry, gave its nod to Kolkata based Dhunseri Investments FDI proposals worth Rs715 crore. The company had proposed to issue and allot equity shares to the non-resident shareholders consequent upon demerger.

Ghir Investments got the approval of the Board for induction of foreign equity in an investing company. The Mauritius based company proposes to bring in FDI worth Rs530 crore.

The other proposals which were cleared include that of Pipavav Shipyard, Gujarat, to undertake additional activity relating to defence sector.

Kyuden International Corporation, Japan also got clearance to set up a joint venture investment company to undertake downstream investments in the business of developing and establishing renewable power projects.

Meanwhile, the next meeting of the FIPB is scheduled to be held on 20 April.

As per the statement, the government deferred decision on the proposal of Verizon Communications India to transfer equity shares to a non-resident group in telecom sector.

Decision on request of Forbo Holding AG, Lindenstrasse, Switzerland, to set up a new wholly owned subsidiary to undertake the business of manufacturing, sale, distribution, lease, import and export of power transmission belts, sophisticated conveyor and processing belts was also deferred.

Similarly, the Board put off decision on the proposal of Essar Capital Holdings (India), Mumbai, for acquiring equity shares by way of subscription to new equity shares and/or purchase of existing equity shares in an investing company engaged in the telecom sector.

The FIPB also rejected five proposals including those of Henry Lamotte India and Mecords India Limited, Mumbai.

During April-January 2010-11, India received FDI worth Rs77,902 crore ($17.08 billion), down 29% from Rs1,09,668 in the same period last year.