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FIPB clears Rs 6.8 billion investment proposals

The Foreign Investment Promotion Board today approved 50 proposals involving foreign inflow of funds to the tune of Rs 6.8 billion.

A proposal by CGF Investment, a company of the Mauritius- based Hutchinson Group, to issue non-convertible preference shares totalling Rs 1.65 billion was cleared by the board, the FIPB sources said.

CGF holds 49 per cent shares in Telecom Investment India Limited. Its share-holding will remain intact after the issue of shares.

Citicorp Finance Limited -- a 100 per cent holding company of Citibank -- got the clearance to bring in $ 10 million to increase its paid-up capital to $ 50 million.

As many as nine proposals were approved by the board in computer software sector. It included a proposal by Alcatel Development Centre to increase its paid-up capital by Rs 35 million.

The FIPB also gave nod to GE Plastics to increase its equity in Advanced Engineering from 50 per cent to 60 per cent by way of issuing shares aggregating Rs 150 million.

IPCL owns 50 per cent in Advanced Engineering at present, which will be reduced to 40 per cent.

Williams of Britain also received clearance to bring Rs 70 million of foreign direct investment to increase its equity to 30 per cent from the existing 23 per cent in Steel Age Industries.

Compagnie Saint Gobain, a leading glass manufacturing company of France, would increase its equity in Grindwell Norton by five per cent to 95 per cent by bringing Rs 1.07 billion of foreign direct investment.

Elf Gas India Limited, which is engaged in import, storage and distribution of liquefied petroleum gas, was allowed to bring in Rs 63.7 million of FDI to increase its shareholding to 100 per cent against the present 74 per cent in Rayseed India Company.

However, Elf Gas will have to divest 26 per cent equity in five years to the Indian company.

Austria-based PFB Project Engineering will bring Rs 4 million of FDI to hold 13.33 per cent stake in Fungicide India Limited of Jammu and Kashmir, which manufactures juice concentrate. It is a 100 per cent export oriented unit.

UNI

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