The Cabinet Committee on Economic Affairs on Tuesday cleared two major foreign direct investment (FDI) proposals — a Rs.4,500-crore offer of Hero Investments Pvt. Ltd. (HIPL), a part of the Hero Group, and Reckitt Benckiser's plan to invest about Rs.3,300 crore to acquire Paras Pharmaceuticals.

In December 2010, the promoters of HIPL had agreed to buyout the entire 26 per cent stake of Japan's Honda in Hero Honda for Rs.3,841.83 crore.

The CCEA also approved the proposal of Reckitt Benckiser of the U.K. to set up a new wholly-owned subsidiary investing company with a foreign equity of 100 per cent, subscribed by Ms. Reckitt Benckiser (Singapore) Pte. Ltd, and R&C Nominees, to make downstream investment in Paras Pharmaceuticals by way of acquisition of 100 per cent equity, according to an official statement.

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