Rejects M&M’s proposal to form a JV with Israel’s Rafael Advanced Defence System

The Central Government on Wednesday announced its approval to 12 FDI (foreign direct investment) proposals envisaging a total inflow of over Rs.802 crore.

“Based on the recommendations of FIPB [Foreign Investment Promotion Board] in its meeting held on November 20, the Government has approved 12 proposals of foreign direct investment amounting to Rs.802.07 crore approximately,” a Finance Ministry statement said in New Delhi.

The FIPB, at its meeting chaired by Economic Affairs Secretary Arvind Mayaram, however, rejected Mahindra and Mahindra’s proposal to set up a defence joint venture with Israel's Rafael Advanced Defence System.

IKEA proposal

The FIPB also forwarded the proposal of Swedish furniture major IKEA to the Cabinet Committee on Economic Affairs (CCEA) as the venture entails a foreign investment inflow of over Rs.1,200 crore.

On its part, the FIPB has given permission to Ingka Holding Overseas to set up a wholly-owned subsidiary for undertaking single brand retailing of IKEA products.

As for the approvals, the Board gave its nod to Ratnakar Bank’s proposal to increase foreign equity in the bank from 43 per cent to 55 per cent. The induction of equity is expected to bring in Rs.300 crore as FDI. Another approval pertained to the proposal of Taqa Jyoti Energy Ventures to bring in Rs.252 crore as foreign investment.

Among other major proposals, Hyderabad-based Mylan Laboratories ha been permitted to acquire an existing pharmaceutical manufacturing facility while OCS Group Singapore Pte Ltd. has received consent for acquisition of equity shares of an India company engaged in business of detective and protective services.

In its application, which the FIPB rejected, Mahindra & Mahindra had sought the government’s nod to set up a new joint venture with Rafael Advanced Defence System for production and development of naval defence system and other products. Among other proposals rejected were those of Coimbatore-based Ampo Valves India and Mumbai-based Berggruen Real Estates.

Defers decision

The FIPB deferred its decision on nine other FDI proposals at its meeting on November 20.

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