Govt clears FDI proposals worth Rs243 crore

Govt clears FDI proposals worth Rs243 crore

New Delhi: The government on Monday announced that it has cleared 12 proposals for foreign direct investment in the country worth a total Rs242.88 crore, including one from Indian Rotorcraft to carry out the assembly of both military and civil helicopters.

The Foreign Investment Promotion Board (FIPB), however, deferred decisions on 15 FDI proposals, including those of Vodafone Essar and Bangladesh-based Rahimafrooz Batteries, and rejected seven applications.

“Based on the recommendations of the FIPB... The government has approved 12 proposals for FDI amounting to Rs242.88 crore," the finance ministry said.

Mumbai-based Indian Rotorcraft had sought permission to induct foreign equity to carry out the business of final assembly of both military and civil versions of helicopters.

The proposal, if implemented, would attract Rs17.42 crore in FDI.

The board, headed by economic affairs secretary R. Gopalan, also gave its nod to an Allcargo Global Logistics’ proposal for FDI worth Rs141.36 crore.

The Mumbai-based firm had sought ex-post facto approval for the issuance and allotment of optionally convertible warrants to raise funds for setting up multi-modal transport operations and inland container depot/container freight stations as part of its logistics business.

Another major FDI application that was cleared in the FIPB meeting held on 2 September was of Checkmate Services. The Gujarat-based firm had sought the government’s permission for induction of foreign equity in its private security services business. The proposal is worth Rs66 crore.

The proposal of PTC India Financial Services, Delhi and Haryana, for transfer of shares by way of a share swap to carry out the business of power generation, as well as Honda Siel Cars India’s application for FDI in a vocational training institute on automobiles and related fields were also cleared.

On the other hand, the board deferred a decision on Bangladesh-based Rahimafrooz Batteries’ proposal to set up a wholly owned subsidiary to undertake the import and wholesale distribution of batteries and provide services in India.

A decision on Vodafone Essar’s request to transfer shares from a resident to a non-resident to carry out activities relating to its telecommunications business was deferred.

Among the other proposals on which decisions were not taken were those of Walt Disney Company (Southeast) Asia Pte, InterCall Asia Pacific Holdings, Singapore, 9X Media and Cordia International Corp, USA.

The proposals that were rejected include those of Jadoli Systems (Bangalore) and AOS Holding India SAS France.

At the last FIPB meeting in August, FDI proposals worth Rs122.79 crore were approved.

The next meeting of the FIPB would be held on 30 September.