BPL Cellular ADR issue among Rs. 1,544 cr. FDI proposals cleared

By Our Special Correspondent

NEW DELHI, JULY 26. The Union Government has approved 34 cases of foreign direct investment of about Rs. 1,544 crores including a proposal of BPL Cellular for an ADR (American Depository Receipts) issue of Rs. 880 crores.

The proposals have been approved by the Commerce and Industry Minister, Mr. Murasoli Maran, on the recommendations of the Foreign Investment Promotion Board (FIPB).

The two major cases cleared are that of BPL and the Rs. 500 crore foreign investment by B4U Multimedia International Limited. BPL Cellular, which operates cellular services in Mumbai, Kerala, Tamil Nadu and Maharashtra, would be the first Indian private telecom operator to raise equity in the U.S. market.

B4U Multimedia, set up to export Indian films and television software abroad, would bring in Rs. 500 crores as FDI, including a Rs. 400 crore preference share issue.

The foreign holding in the multimedia company would go up to 96.6 per cent after the FDI infusion.

An official release says the proposal of Kotak Mahindra Private Equity Trustee Limited (Mauritius) to invest Rs. 45 crores in a venture capital fund has also been approved. This will bring the foreign equity stake in the venture capital fund to 85 per cent.

Another proposal relates to that of Applecomp (India) Limited for Rs. 75 crore foreign investment.

The company is engaged in the manufacture of compressors, compressor motors, refrigerators and washing machines. The foreign equity holding in the venture will thus become 48.39 per cent.

PTI reports:

Swraj Paul's Caparo group has been permitted to set up a wholly- owned venture for manufacturing and designing of automotive and other parts with an investment of Rs. 8 crores.

The Minister also allowed the proposal of Finolex Cables for withdrawal of its foreign financial collaboration, involving a foreign exchange outgo of Rs. 12.24 crores. Finolex has also been given permission to enter into a technical collaboration agreement.

Other proposals cleared include amendment of foreign currency approval to Lubrizol India, GDF International and Sai Shipping Co. Pvt. Ltd. He also cleared the proposal of consultancy firm KPMG to expand its activities in the country.

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