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FIPB clears 31 plans involving Rs 14 bn; Fiat Auto to raise capital to Rs 20 billion

The Foreign Investment Promotion Board today permitted the Italy-based Fiat Auto to increase its paid-up capital by Rs 10.90 billion to Rs 20 billion in its Indian subsidary.

The proposal to raise the paid-up capital in Fiat India Automobiles Limited was among 31 proposals, involving foreign direct investment of Rs 14 billion, approved by the FIPB.

Fiat has, however, not talked about any new models in its proposal, board sources said.

A proposal by Polygram of the Netherlands to buy out 49 per cent stake of its Indian partner, the Patel group of Bombay, in Polygram India Limited, a music cassette company, was also given a green signal, the sources said.

The United States-based Loral Space and Communications's proposal to establish a joint venture with K K Modi group in the media software sector was also approved. The US-based company will hold 49 per cent stake in the new joint venture. Initially, Rs 42.5 million will be infused, but the FDI will increase to Rs 850 million over three years.

Rotschild, a non-banking finance company, was allowed to float redeemable preferrential shares to raise $ 2.9 million. The company will take up non-fund based activities.

The FIPB, has allowed BTP India Limited to buy 26 per cent stake of an RPG group company. Feddars India Limited has been permitted to bring in Rs 85 million initially and upto Rs 340 million over a period of time. Rediffusion Communications India Limited was permitted to extend its royalty-based business.

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