Government Clears 25 FDI Proposal, Boost India’s Image On Global Radar

In what could be a boost to the investment sentiments in India, the government has approved 25 proposals of Foreign Direct Investment worth nearly Rs 1,546.12 crore. The proposals were granted approvals following a meeting held on August 29, 2014, in which the Foreign Investment Promotion Board (FIPB) made the recommendations.

The FDI proposals that have been given a green signal by the government include sectors such as Pharmaceuticals, multi brand retail and single brand retail sectors, defense and telecom among others.

“A Brownfield pharma company is seeking approval for additional FDI and NR-NR transfer by subscription and transfer of CCPS and invest Rs 600 crore,” stated the ministry.

Similarly, M/s Camzena Holdings Limited had also sought the approval for infusion of additional FDI by subscribing to shares on a right basis and transfer of its shares constituting 48.99% by Nulife (Cyprus) Ltd to the applicant company. The proposal has been cleared and the company has proposed to invest Rs 16.94 crore in the country in the pharma sector.

Another such proposal by M/s Flemingo International (BVI) Limited has also been approved as the company wants to invest Rs 150 crore in India as well as set up a wholly-owned subsidiary in the country to carry out duty-free business.

The same company had also sought clearance to invest over Rs 40 crore in an Indian company involved in duty-free shops by acquiring 49% stake in the home grown company.

On the NRI investments front, a proposal to invest Rs 500 crore through Indiareit Real Estate Fund-Scheme-I, has been cleared by the government.

“The applicant has sought approval to accept NRI investment amounting to Rs 500 crores. The applicant has undertaken that full details of NRI investors along with appropriate certification of source of funds verification undertaken by it would be provided as and when it receives NRI investments”, stated the ministry.

A proposal seeking approval for downstream investment in M/s Atria Convergence Technologies Private Limited, an internet service provider and holds downstream investment in companies engaged in internet service provider and multi system operator for cable network has been deferred. Also, another proposal for increase in foreign equity participation from the existing 96% to 99% of the equity of the Company and induction of further FDI of over Rs4 crore by the foreign collaborators has been deferred for the time being.

“In addition, one proposal viz., M/s Medereich Limited amounting to Rs 1,800 crore has also been recommended for consideration of Cabinet Committee on Economic Affairs,” said the Ministry of Finance in a statement.