Indian Government Approved 12 FDI Proposals worth over Rs 2.6 k Crore

Posted: March 25, 2013 in Current affairs
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The Indian Government said that it has finally approved 12 FDI proposals worth over Rs 2.6k Crore (approximately Rs 2,609 crore). These twelve FDI proposals eventually include the proposal of Pharma firm Claris Otsuka.
 
Decathlon Sports India’s proposal for introduction of foreign funds worth Rs 700 crore to participate in single brand retail has also been approved by the Foreign Investment Promotion Board (FIPB), which is eventually headed by the honorable Economic Affairs Secretary Mr. Arvind Mayaram himself.
 
The Finance Ministry of India has issued a press statement acknowledging this economic news. In that statement the ministry said, “Based on the recommendations of FIPB in its meeting held on February 13, Government has approved 12 proposals of foreign direct investment amounting to Rs 2,609.27 crore approximately.”
 
The plan of Claris Otsuka Ltd, which is an Ahmadabad-based Pharma Company, to assemble its Infusions business into a brand new Joint Venture (JV) with Foreign Direct Investment worth Rs 1,050 crore, was the biggest cleared proposal.
 
FIPB also cleared the proposal of Mumbai-based Glynwed Pipe Systems. It had applied with a proposal to the board, as it wanted to receive foreign investment of around Rs 800 crore for building downstream investment in order to boost its overall profit scenario.
 
Another proposal of Pramod S.A.S, France, to be eligible to receive foreign funds of Rs 29.69 crore into an Indian Company via a Joint Venture mode, was also approved by the board members. This will allow the company to engage in the single brand retail trading in India.
 
Le Creuset Trading and Fossil India are the companies which had shown a lot of interests to enter in the Indian retail market by opening single brand retail stores in India. The board finally approved the FDI proposals of these two companies, so now these two can set up retails stores as a wholly-owned subsidiary of a foreign company with no difficulties.
 
The board has also cleared a few more proposals, which it had received by the several of leading companies. Some of those proposals came from companies like Netherlands-based Aon Holdings, Menarini Raunaq Pharma and Al Shukur Company for Engineering.
 
It has to be mentioned here that the board did not approve all the proposals. As a matter of fact it eventually rejected one proposal and deferred nine of them. The proposal of Alliance Insurance Brokers to receive foreign money to expand the business of Insurance broking was deferred by the Foreign Investment Promotion Board (FIPB).
 
The only proposal that was rejected by the board is the proposal of Erica Healthcare, which is a Mumbai-based company. It submitted a proposal in front of the board to increase foreign investment, but the board did not approve it.

 

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