Chinese firm among new FDI proposals

NEW DELHI JUNE 26 . In line with the increased economic cooperation between India and China, the Government today cleared a Rs. 30 crore foreign direct investment (FDI) proposal of a Chinese company, Haier Electrical Appliances, to set up a 100 per cent subsidiary in India. This proposal was part of the 25 FDI proposal involving almost Rs. 150 crores cleared today by the Union Finance Minister, Jaswant Singh, on the recommendations of the Foreign Investment Promotion Board.

Most proposals pertain to wholesale trading, electronics and IT services. The other major proposals were from the U.K. based Venturetech Assets Limited and the Netherlands-based Perot Systems Investments and Berkeley Square Holding. Other proposals were from Igate, Saint-Gobain, Swedish Match and Motorola Singapore.

The Chinese electrical company plans to set up a wholly-owned subsidiary in Delhi for manufacture, sale, supply, after-sales services and `cash and carry' wholesale trading activities of electrical products.

Venturetech Assets would invest Rs. 87.50 crores in the Chennai-based Sify for setting up public data network for providing e-commerce, EDI and Internet services. The Indian company would offer about 1.02 million shares to the foreign partner.

Perot Systems will invest Rs. 11.50 crores for acquiring an Indian company through its Indian arm based in Chennai. Berkeley Square Holding will pick up 50 per cent stake in WPP Marketing Communication for Rs. 12.50 crores. Alpha Beteiligungesellschaft GmbH will increase its holding in AMC Cookware India from 51 to 100 per cent for an investment of Rs. 5.04 crores.

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