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Govt clears 13 FDI proposals


Govt clears 13 FDI proposals

Last updated: October 5 2007
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  • Govt clears 13 FDI proposals

    The government has cleared 13 foreign direct investment (FDI) proposals worth Rs 393.36 crore, including Maruti Udyog’s proposed joint venture (JV) with Japanese Futaba Industrial and Rural Electrification Corp’s proposed public offer.

    MUL’s proposal to set JV with Futaba Industrial has been approved with foreign equity of up to 51% amounting to Rs 45.9 crore, an official statement said on Thursday.

    International newswire Bloomberg’s proposal to down-link its TV programmes into India and to increase paid up capital involving infusion of Rs 85 lakh was cleared by the Foreign Investment Promotion Board (FIPB).

    Other important proposals include induction of foreign equity of Rs 232.58 crore (72.5%) by Secunderabad-based Aster Infrastructure offering telecom services and Hyderabad-based KVK Energy’s proposal to bring in 70% foreign equity of Rs 97 crore to invest in downstream operating companies.

    The FIPB cleared a proposal by a BPO arm of Citigroup to form a subsidiary to make investment in SEZ units.
    Japan’s Metal One Corp’s proposal to infuse foreign equity of up to 5% in a JV company with Tata Metalliks (51%) and Kubota, Japan (44%) engaged in the manufacture and sale of ductile iron pipes, fittings and accessories were approved by the board.

    The board also cleared South Asia Breweries’ proposal to pick up 60% stake in Parag Breweries. The FIPB approved Rural Electrification Corp’s (REC) proposal for disinvestment of 10% of the shareholding by way of transfer and also to make public issue of fresh equity capital of 10%.

    Generally, companies do not need clearance from the FIPB for initial public offers. However, the Reserve Bank had asked REC, a non-banking finance company, to take FIPB’s nod for the portion which would come from non-residents. The board rejected a proposal of Ford Automotive Finance Company India. US-based financial services firm Bear Stearns had proposed for extension of timelines.

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