FDI clearance for 24 software proposals

By Our Special Correspondent

NEW DELHI, APRIL 5. The Government has approved 57 cases of foreign direct investment including Birla A T and T's plans for infusing Rs.1016.75 crores for merging with Tata Communications. In addition, the Indiainfo.Com's proposal for issue of American Depository Receipts (ADR) worth $100-150 million and another $15 million for Non-Resident Indians (NRIs) has been cleared.

The total investment approved by the Commerce and Industry Minister, Mr Murasoli Maran is estimated at Rs.2504.93 crore. The proposals cover a wide range of sectors but the maximum appear to be in the area of software development. According to an official release, Silverline Technologies, a computer software company has also been allowed to issue ADRs worth Rs.228 crores.

The proposals which have already been cleared by the Foreign Investment Promotion Board (FIPB), include the case of Moser Baer India Limited which has been allowed to issue shares worth Rs. 387 crore to the International Finance Corporation and other financial institutions. The foreign equity in the company has thus been raised to 15.40 per cents. Similarly, Ogden Energy India (Balaji) Ltd. has been permitted to bring in Rs. 172 crore for its power project in which the foreign equity holding will become 74.8 per cent.

As many as 24 of the FDI proposals approved by Mr. Maran are in the area of computer software. These include three proposals by Mauritius-based companies - G04 Careers.Com, G04 Ticketing.Com and G04 I.Com. All envisage setting up 100 per cent owned companies. The first involves Rs. 5 crore investment for setting up an Internet website to provide an interface between job- seekers and job-providers while the second envisages setting up a website for selling cinema and theatre tickets over the Internet. The third will entail Rs. 50 crore investment and is meant for setting a horizontal website for use of Indian audiences all over the world.

The Minister also cleared a proposal by eLifestyle.com to set up portals to provide content to various communities in India and abroad at an investment of Rs. 43 crore. Buy buzz Inc. of the U.S. has similarly been allowed to set up a wholly owned company for establishing a development centre and call centre to undertake software development for expert.

Besides Bayer of Germany has been permitted to raise its equity stake in its Indian subsidiary from 70 to 82 per cent for manufacture and marketing of leather chemicals and auxiliaries.

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