FDI proposals worth Rs1,810 crore cleared by FIPB

Out of the nine proposals discussed by the FIPB, four were cleared, four were deferred and one was withdrawn

New Delhi: The foreign investment promotion board (FIPB) on Tuesday cleared four FDI proposals, including that of HDFC Standard Life Insurance, totalling about 1,810 crore. The other proposals which were cleared include that of Firefly Networks Ltd and Software is Correct lnc., a finance ministry official said.

HDFC Standard Life had approached the FIPB for transfer of its shares currently held by HDFC to Standard Life (Mauritius Holdings) 2006 Ltd, thereby increasing foreign shareholding in insurance JV from 26% to 35%.

“The proposal of HDFC Standard Life would entail foreign investment of 1,700 crore," the official added.

FireFly Networks Ltd had sought the approval of the existing foreign investment (50% indirect) and to permit commencement of activities as a Telecom Infrastructure Provider Category-I. The proposal does not entail any new FDI.

The total FDI inflow from the four proposals which were cleared would be about 1,810 crore, the official added. Out of the nine proposals which were discussed by the FIPB on Tuesday, four were deferred and one was withdrawn.

The FIPB, headed by economic affairs secretary, is an inter-ministerial panel and can approve foreign investment proposals of up to 5,000 crore.

The four deferred proposals include the Aviva Life Insurance proposal to increase the foreign shareholding from 26% to 49%. It also included Tata Sikorsky, which had sought FIPB’s approval for non-resident to non-resident transfer of 26% of the shares of Tata Sikorsky Aerospace from United Technologies International Corporation - Asia Private Ltd to Lockheed Martin Global, Inc. (USA).

Besides, the proposal of Sharekhan Ltd and Quantum Simulators Pvt Ltd was deferred by the board.

The one proposal which was withdrawn was that of SunE Solar BV as it came under the automatic route.

The FIPB today also took nine other proposals on record, which were cleared by the department of industrial policy and promotion (DIPP), totalling about 200 crore.