The government has approved 19 foreign direct investment (FDI) proposals entailing a total inflow of about Rs.4,340.77 crore, the bulk of which is accounted for by Tata Steel and Future Ventures.
According to a Finance Ministry statement here, on the recommendation of the Foreign Investment Promotion Board (FIPB), the government cleared Tata Steels' proposal for issue of warrants worth Rs.1,100 crore as part of its fund mobilisation programme.
Among other approvals, Mumbai-based Future Ventures India Ltd. received the government's nod to allot shares worth Rs.300 crore to foreign institutional investors (FIIs) and non-resident Indians (NRIs) under its portfolio investment scheme while Karur Vysya Bank has also been permitted to issue partly paid-up shares worth Rs.107.50 crore.
Likewise, Standard Chartered Bank (Mauritius) got the go-ahead to acquire equity shares worth Rs.4.50 crore of an Indian company. It will undertake additional business of operating a stock exchange and trade in currency and interest rate futures in particular. In the manufacturing sector, the government approved the proposal of Japan-based Yorozu Corporation to set up a joint venture company for the production of various automotive parts with an investment inflow worth Rs.140 crore.
Similarly, EADS Deutschland GmbH and Larsen & Toubro have been allowed to bring in foreign equity up to 26 per cent in a joint venture to undertake manufacturing, distribution and marketing of defence-related products such as electronic warfare and military avionics.
Also getting the go-ahead is Wireless Broadband Business Services (Delhi) for inducting foreign equity worth Rs.362.78 crore to carry out Internet and broadband services. At its meeting held on December 31, 2010, the FIPB, headed by Finance Secretary Ashok Chawla, however, deferred its decision on 16 FDI proposals, including those of Reliance Broadcast Network and Essar Capital Holding, and rejected two others. Among the rejected proposals was that of B4U Television Network for induction of foreign equity to carry out business of up-linking a non-news and current affairs channel.
The Anil Ambani-led Reliance Broadcast Network's proposal envisaged induction of overseas investment by FIIs and NRIs through fresh allotment of shares by private placement up to the limit of 20 per cent of the total paid-up capital of the company.
Tata Steel and Future Ventures account for the bulk of Rs. 4,341 cr FDI