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16 FDI proposals worth Rs. 647 crore cleared

NEW DELHI: The Central Government on Tuesday permitted Sistema Joint Stock Financial Corporation of Russia to hike its equity stake up to 74 per cent in Shyam Telelink with a foreign direct investment of about Rs. 187 crore.

Russia-based Sistema’s venture is among the 16 FDI proposals envisaging a total inflow of Rs. 647.48 crore which were approved by Finance Minister P. Chidambaram on the recommendations of the Foreign Investment Promotion Board (FIPB).

Sistema, listed on the London Stock Exchange, controls Russia’s largest mobile operator. It plans to raise its stake in Shyam Telelink from 10 per cent to 51 per cent and subsequently ramp up its shareholding to the maximum permissible limit of 74 per cent.

Among other major proposals, Italy-based Dolce & Gabbana and India’s bigger realty firm DLF have been allowed to set up a joint venture in single brand retailing of lifestyle products. The Italian firm is to hold 51 per cent stake in the joint venture for selling fashion and lifestyle products under the brand name Dolce & Gabbana and DG Dolce & Gabbana.

Mr. Chidambaram also cleared Germany-based Continental AG’s proposal envisaging an investment of Rs. 55 crore to set up a new joint venture company to manufacture hydraulic brake systems for passenger cars and light-trucks.

HIPE Transport Ventures has also been permitted to induct Rs. 88 crore as FDI in a holding company engaged in ventures relating to infrastructure such as development of ports, transportation and logistics.

Aaavishkaar India Micro Venture Capital Fund (VCF) also received the go-ahead to induct Rs. 100 crore as foreign equity in SEBI-registered VCF against issue of units for making investments in micro, small and medium enterprises. Manipal Group’s proposal to convert foreign-owned operating company into a holding company after paying the penalty imposed by the Reserve Bank of India was also approved by the Finance Minister.

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