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Rediff News  All News  » Business » Govt approves 28 FDI proposals for Rs 1327.7 cr

Govt approves 28 FDI proposals for Rs 1327.7 cr

July 04, 2008 19:18 IST

Global retail major Marks & Spencer's proposal for 51 per cent foreign direct investment in single brand retail business is among the 28 proposals totalling Rs 1,327.7 crore (Rs 13.27 billion) that have been approved by the government.

"Based on the recommendations of Foreign Investment Promotion Board in its meeting held on June 24, Finance Minister P Chidambaram has approved 28 proposals of FDI, said a finance ministry statement.

The approved proposals relate to ministries and departments of chemicals & petro-chemicals, industrial policy & promotion, information & broadcasting, urban development, tourism and economic affairs.

Two other retail proposals which got approval are -- Pearle Europe for induction of 50 per cent FDI for single brand retail trading and Giordano Fashions to establish a chain of single brand retail stores.

The retail proposals have been cleared subject to the condition of Press Note 3, 2006 under which no single foreign institutional investor can directly or indirectly hold more than 10 per cent equity in the venture.

Parryware Roca's Rs 741.48 crore (Rs 7.41 billion) FDI proposal also got approval for increasing foreign equity from 50 per cent to 100 per cent in the sanitaryware venture apart from Multiscreen Media's FDI proposal for Rs 158.3 crore (Rs 1.58 billion).

Real estate major Eldeco's Rs 195.7 crore (Rs 1.95 billion) proposal for induction of foreign equity

and change in status from operating company into operating cum holding company was also approved.

In the atomic power sector, Hungary's Global Energy Mining and Minerals has been permitted to induct FDI up to 74 per cent amounting about Rs 24 crore (Rs 240 million) in a titanium mining and separation venture.  

Aquamarine Resorts's Rs 90 crore (Rs 900 million) proposal to acquire the status of foreign-owned Indian holding-cum-operating company to make downstream investment also got approval.

ENI UK Holding got approval for acquisition of 20 per cent shares of Hindustan Oil Exploration Company through open offer for Rs 26.11 crore (Rs 261.1 million), besides International Asset Reconstruction company to sell up to 19.56 per cent of its post-issue stake for Rs 24.20 crore (Rs 242 million).

Mauritius-based HSBC Violet Investments' proposal for induction of foreign equity and conversion of operating company into an operating cum holding company to make further downstream investment was also approved.

In the health sector, Midmark Corporation of the US would induct FDI up to 49 per cent in a company engaged in the manufacture of health equipment.

However, 11 FDI proposals were deferred on the recommendation of FIPB, including Hindi newspaper group Amar Ujala's proposal for amalgamation of two companies and of Transcend Infrastructure to increase FDI beyond 49 per cent in a towers' venture engaged in communications and broadcasting.

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