The government has approved 8 foreign investment proposals worth Rs. 883.16 crore, with L&T Finance accounting for the major inflow, but deferred decision on those of Hindalco, Intel Capital and Reliance Broadcast Network, along with 11 others.
The government also rejected 6 proposals, including that of by DLF Limitless. "Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on December 3, 2010, Government has approved 8 Proposals of Foreign Direct Investment amounting to Rs. 883.166 crore approximately," an official statement said today.
L&T Finance proposal entails FDI inflow of Rs. 641.25 crore. Besides, the proposal of Konecranes Finance Corporation, involving FDI of Rs. 169 crore, has been cleared.
It plans to invest in a company engaged in the financing, investment and consultancy activities in the field of manufacture of cranes. Similarly, Tata Advanced System's Rs. 42.82 crore has also been cleared.
It is a subsidiary of Tata Sons and the company focuses on providing solutions for defence, homeland security and disaster management. However, the government has deferred 14 proposals including that of Intel Capital Corporation, ABG Shipyard, Hindalco Industries, Verizon Communications India, Reliance Broadcast Network and Essar Capital Holdings (India).
Reliance Broadcast Network, the Anil Ambani Group company that is engaged in FM radio broadcasting. The proposal is to get foreign investment through portfolio investments or private placement of equity was deferred.
Intel Capital plans to make investment by subscribing to warrants in an investing company, while Hindalco Industries' proposal is for issuance of partly paid up shares. The FDI proposals of six companies have been rejected.
These include Pharmac Analytic Solutions, Asha-Kiran Shelters Foundation of Pune, Forbes Bumi Armada, Associated Broadcasting Co, Flagship Infrastructure of Mumbai and Delhi-based DLF Limitless Developers. The other companies whose proposals have been cleared include Knowledge Investments (Mauritius), Gigant India Automotive, Catvision Products Ltd of Delhi, Elbee Express and Thane-based Alan Dick & Company (India).
Enam India Infrastructure Fund Ltd of Mauritius, which wants to bring FDI of Rs. 5,750 crore, has been recommended for the consideration of CCEA, as the investment involved is above Rs. 1,200 crore.