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FIPB clears Rs 6.3 billion worth FDI, nods to Itochu Corp's 100 pc unit

The Foreign Investment Promotion Board today cleared 42 proposals amounting to a total foreign direct investment inflow of Rs 6.30 billion, including a plea by Beckton Dickinson for hiking equity in its existing venture and by Itochu Corporation of Japan for setting up a wholly owned subsidiary.

The board, however, deferred decisions on applications of Reuters news agency and Godrej Agrovet, FIPB sources said.

Besides, Phoenix has been allowed to hike stake in its Indian joint venture from 51 per cent to 96 per cent by bringing in Rs 98 million.

Beckton Dickinson has been given the green signal to infuse an additional $ 20 million equity into its existing 100 per cent subsidiary, hiking the total equity to $ 50 million.

The fresh investment would be used for manufacturing diagnostic and medical equipment.

Itochu Corporation has been given the nod to invest Rs 100 million for setting up a consultancy and technical services company which will also undertake turnkey projects in the infrastructure sector.

Azal Azerbeijan of Ireland has been allowed to bring in Rs 4 million for picking up 40 per cent equity in a venture which will provide charter aircraft and helicopters on hire to oil and natural gas companies. The proposal was recommended by the board subject to guidelines of the civil aviation ministry.

In the financial services sector, BA Securities has been allowed to increase its paid-up capital in a merchant banking services venture, where it presently holds 75 per cent stake. Consequently, the amount of equity would be increased by Rs 225 million but the equity structure would not change.

Besides, Ind Global Shares and Securities, which is engaged in the business of security broking, has been allowed to issue preference shares of Rs 250 million.

In the consultancy sector, proposals worth Rs 450 million were approved by the board at its hearing today, including a plea by Signa International Holdings Limited for increasing its paid-up capital by Rs 35 million. BMG Vertriebs has been allowed to set up a wholly owned subsidiary by bringing in Rs 10 million.

In textiles, Boorugu Knits Limited has been allowed to set up a venture for making cotton socks. FDI in the venture would amount to 15.5 per cent while NRI equity would total to 23.5 per cent.

GPS Investments of Mauritius has been allowed to set three independent wholly-owned subsidiaries for making investments in the hotel and hospitality business. The three ventures would be set up with individual investments of Rs 1.89 billion, Rs 850 million and Rs 1.07 billion.

Italy-based Foundry Automation has got the green signal for bringing in Rs 5 million to set up a 100 per cent subsidiary to make items for hydraulic machines. Meanwhile, Pyramid Surveying Equipment Private Limited has been given the nod to induct NRI equity of upto 32 per cent which would translate into an investment of Rs 2.4 million.

Meritor Light Vehicle Systems of Australia is setting up a wholly-owned subsidiary by bringing in Rs 23 million for manufacturing and selling automotive components.

In the software sector, Aarvee Information systems and Saaba Software Inc of the US have been allowed to set up software technology parks in the country.

UNI

RELATED REPORTS:

March 20: FIPB clears Rs 6.8 billion FDI proposals

March 13: FIPB clears Rs 5 billion FDI proposals

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