IKEA’s other proposal has been withdrawn from the FIPB agenda
The government, on Tuesday, announced its approval to four foreign direct investment (FDI) proposals envisaging a total capital inflow worth Rs.1,286.75 crore, the lion’s share of which is accounted for by Hospira Healthcare’s plan to induct foreign equity.
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on December 31 last year, the government has given the go-ahead to U.S.-based Hospira Inc., Singapore-based Hospira Pte Ltd. and Hospira Healthcare India Pvt. Ltd. to induct foreign equity in to Indian company, which will acquire manufacturing facilities in the pharmaceuticals sector.
The total capital inflow envisaged in the joint application through this deal is put at Rs.1,194.75 crore.
At the meeting, the FIPB, headed by Economic Affairs Secretary Arvind Mayaram, also gave its nod to Mumbai-based Perrigo API’s proposal to bring in foreign equity worth Rs.55 crore to carry out the business of manufacturing pharmaceutical ingredients.
Alongside, Kolkata-based Pran Beverages has received permission to increase foreign equity worth Rs.30.25 crore for manufacturing beverages while telecom firm InterCall Asia Pacific Holdings’ proposal worth Rs.6.75 crore to set up a wholly-owned subsidiary was also approved.
Significantly, the proposal of Ingka Holding Overseas BV, IKEA’s parent company, was withdrawn from the agenda of the FIPB meeting, according to Finance Ministry’s statement here.
While IKEA, the Swedish furniture major, has already received consent to invest Rs.4,200 crore to set up single-brand retail stores, it has further plans to open cafeterias at the business outlets.
Two proposals deferred
This apart, the board also deferred two proposals, that of Mumbai-based Alliance Insurance Brokers Private Ltd. and Netherlands-based Aon Holdings BV, the statement said.
While Alliance’s proposal was for induction of foreign equity by way of issue and transfer of equity shares to carry out insurance broking business, Aon’s application was for post-facto approval for foreign equity induction to carry out the business of insurance broking and risk advisory services.