FDI proposals worth Rs. 880 cr. cleared

By Our Special Correspondent

NEW DELHI, AUG. 29. The Commerce and Industry Minister, Mr. Murasoli Maran has cleared 58 foreign direct investment proposals involving an amount of Rs. 880 crores. These include a proposal by Koshika Telecom for divesting 49 per cent equity stake to a foreign partner leading to an inflow of Rs. 282 crores.

Similarly, a proposal by Compagnic de Saint Gobain of France for a foreign investment of Rs. 212.50 crores has been cleared for setting up an Internet web site for trading meant for the chemical industry.

In addition, a proposal by Classic Milk Foods for an investment of Rs. 90.98 crores has been cleared to produce butter oil and other dairy products.

In the power sector, CLP Powergen India's proposal to set up a project envisages a foreign investment inflow of Rs. 87.36 crores. The proposal is for establishment of a gas-based mixed fuel combined cycle power project and proposed to increase equity from 88 to 100 per cent.

The major investment proposals cleared pertain to NBFC activities, setting up of technology parks, establishment of gas- based power projects, edible oil industry and the infrastructure sector, says an official release.

PTI adds:

Dutch consumer electronics major Philips' proposal to manufacture soda glass shells, soda glass tubings and lead glass tubings was given the go-ahead envisaging Rs. 24.78 crore foreign investment.

Information Technology Park proposes to bring in Rs. 50 crores as FDI for conversion of loan into equity in development, sale, renting and operational maintenance of technology business park.

Power equipment major, ABB Holdings (South Asia) proposed to set up a wholly-owned subsidiary in India which would act as a holding company called ABB Industrial IT Development Centre but does not envisage an FDI inflow. Also U.S. satellite major Panamsat will provide consultancy in connection with marketing Panamsat satellite capacity and will act as a communication channel between the satellite and its customers in India, the FDI inflow being Rs. 9 lakhs.

ITW Signode India will raise foreign equity from 51 to 100 per cent for manufacturing packaging machinery and consumables by bringing in Rs. 11.20 crores.

Construction major Kvaerner Cementation India also plans to increase foreign equity from 64.38 per cent to 100 per cent and bringing in Rs. 24.78 crore FDI for civil construction works.

Other proposals cleared today include: McDonalds India's proposal for setting up more restuarants but no fresh FDI inflow is involved; Bharti Cellular for amending existing foreign currency approval without any fresh FDI inflow; Boardvision of the U.S. for undertaking e-commerce activities with Rs. 5 crore FDI inflow; Feedback Ventures proposes to amend the existing FC approval for providing consultancy services; India Life Asset Management Co plans to raise foreign equity from 49 per cent to 66 per cent by bringing in Rs. 16.53 crore FDI to conduct NBFC activities and Magnum International's proposal to increase foreign equity in power generation business from 29.12 per cent to 34 per cent involving an inflow of Rs. 6.09 crores.

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