The government has rejected a proposal by autos-to-software conglomerate Mahindra & Mahindra to set up a joint venture with Israel’s Rafael Advanced Defense Systems Ltd, a government statement said on Wednesday.

The two companies were to invest about Rs.100 crore to develop and manufacture naval systems.

The Foreign Investment Promotion Board of the Finance Ministry has approved 12 proposals of foreign direct investment totalling about Rs.802 crore.

As per a finance ministry statement, Ratnakar Bank’s proposal to increase foreign equity from 43% to 55% has also been approved. The move is likely to bring in Rs.300 crore worth of FDI.

The ministry said that apart from M&M, FDI proposals of Coimbatore-based Ampo Valves India and Mumbai-based Berggruen Real Estates too have been rejected.

Meanwhile, MCX's application for post facto approval for FDI received before issuance of DIPP's Press Note 2 of 2008 on guidelines for foreign investment in commodity exchanges was withdrawn from the FIPB's agenda, the ministry said.

Even after FIPB clearance, FDI proposals to the tune of over Rs.1,200 crore have to be approved by the cabinet committee on economic affairs.