Citi arm's SEZ proposal gets FIPB nod | business | Hindustan Times
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Citi arm's SEZ proposal gets FIPB nod

FIPB approves global banking major Citibank's proposal to set up a subsidiary that would invest in special economic zones, reports Gaurav Choudhury.

business Updated: Sep 20, 2007 21:27 IST
Gaurav Choudhury

The foreign Investment Promotion Board (FIPB) on Thursday approved global banking major Citibank's proposal to set up a subsidiary that would invest in special economic zones (SEZs).



The subsidiary company, Citigroup Global Services, is a captive business process outsourcing (BPO) unit of the Citigroup and was earlier known as e-Serve International.



According to official sources, the Citigroup's proposal does not involve any FDI inflow as it primarily deals with a foreign company setting up a wholly-owned subsidiary.



The global banking giant plans to form a new subsidiary for downstream investment in special economic zone (SEZ) units.



The Board also gave its nod to car major Maruti's proposal to set up a joint venture for manufacturing auto components at its facility in Manesar, Haryana.



Maruti will form a joint venture with Japan's Futaba Industrial Company involving an estimated foreign direct investment of around Rs 45.90 crore. Futaba would hold 51 per cent stake in the venture.



Futaba is a key component manufacturer and supplier for Suzuki Motor Corporation in the area of exhaust system components for automobiles, including tubular and fabricated exhaust manifolds, catalytic converters, exhaust pipes and exhaust mufflers.



The FIPB also cleared a proposal related to down linking by US-based media company Bloomberg. The proposal involves FDI inflow of Rs 1.5 crore.



After the FIPB's approval, the proposals will go to Finance Minister P Chidambaram for final clearance.