Government Approves Thirteen Proposals of Foreign Direct Investment (FDI) Amounting to About Rs. 1258.53 Crore

Press  Note By  FDI :Tuesday, October 29, 2013

Government Approves Thirteen Proposals of Foreign Direct Investment (FDI) Amounting to About Rs. 1258.53 Crore

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on September 19, 2013, Government has approved thirteen (13) proposals of Foreign Direct Investment (FDI) amounting to Rs. 1258.53 crore approximately.

                In addition, one proposal viz., M/s Axis Bank Ltd. Ahmedabad, amounting to Rs. 6265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).  

Details of proposals in the Foreign Investment Promotion Board (FIPB) Meeting held on 19.9.2013.

Following thirteen (13) proposals have been approved:

Sl. No.	Name of theapplicant	Particulars of the proposal	FDI/NRI inflows (Rs. in crore)
1	M/s IndianRotocraft Pvt. Ltd.	Amendment in the approved activities of the previous FC approval letter to replace the helicopter model as AW 119Kx, the upgraded model, in place of AW 119Ke, the discontinued model.	Nil
2	M/s BF ElbitAdvanced Systems Pvt. Ltd., Pune	Induction of foreign equity in defence sector.	37.44 (US $  6 million)
3	M/s Camson Bio Technologies Ltd., Karnataka	Issue of warrants to a foreign collaborator in the business of agricultural biotechnology.	32.18
4	M/s SD Bio Standard DignosticsLtd	Infusion of additional FDI in an existing foreign owned pharma company.	27.5
5	M/s ShanthaBiotechnics Pvt. Ltd.	An existing foreign investor in a brownfield pharma company to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment.	755.00
6	M/s EmpaysPayment System India Pvt. Ltd., Mumbai	To set-up a Multi- Bank Payment System using the Instant Mobile Transfer System (IMT).	27.50
7	M/s EquitasHoldings Pvt. Ltd.	A holding-cum-investment company in microfinance sector to increase FDI by issuance of equity shares and new foreign investors.	222.80
8	M/s Jaguar-Max Security Solutions Pvt. Ltd., New Delhi	Induction of foreign investment to carry out the business of Private Security Services company.	0.11
9	M/s Stork Titanium Pvt. Ltd., New Delhi	Induction of foreign investment to carry out the business of manufacturing, trading and dealing in titanium products.	156.00 (US $ 25 Million)
10	M/s StyrolutionSouth East Asia Pte. Ltd., Singapore	NR to NR transfer of shares within a group company by way of a block deal on the special trading window of BSE Ltd., /NSE Limited.	Nil
11	M/s HCL Technologies Ltd., New Delhi	Induction of direct foreign investment in its own total paid-up equity share capital and consequent indirect foreign investment in its wholly owned subsidiary.	Nil
12	M/s Cable & Wireless Pvt. Ltd.	Overseas group restructuring in telecom Sector Company without change in approved FDI/cap/investor.	Nil
13	M/s Multi Screen Media Pvt. Ltd.	To increase the foreign equity participation for production of television programmes in Indian anddownlinking   certain TV channels.	Nil

The following eight (8) proposals have been recommended to be deferred:

Sl. No	Name of the applicant	Particulars of the proposal
1	M/s SasMos Het Technologies Ltd., Bangalore	Post facto approval to undertake manufacturing of electronic warfare subsystems, parts and accessories for airborne ground and naval application etc.
2	M/s Jubilant AeronaticsPvt. Ltd.	Amendment in the approved activities of the approval letter in defence sector.
3	M/s Kinedex Healthcare Pvt. Ltd., Jaipur	Post facto approval for induction of foreign equity in the existing Indian pharma company.
4	M/s Laurus Labs Pvt. Ltd., Hyderabad	Downstream investment in an Indian pharmaceutical company by way of subscription to fresh allotment of equity shares.
5	M/s Soma Tollways Pvt. Ltd.	Post facto approval for increase in foreign equity in an investing company.
6	M/s M.D. Shajahan Bablu, Bangladesh	Bangladesh nationals to incorporate a company in India with 100% FDI to engage in trading of Raw Jute and Jute Products and Agro based products.
7	M/s Green Destinations Holdings, Mauritius	NR to NR transfer of shares before the expiry of lock-in period.
8	M/s Monsoon Capital LLC, USA	To make FDI investments directly or indirectly in an Indian Trust.

The following two (2) proposals have been recommended for rejection:

Sl. No	Name of the applicant	Particulars of the proposal
1	M/s SundaramRamaswamy, Gurgaon	Conversion of an existing Indian Company into a LLP and additional FDI infusion.
2	M/s SQS India InfosystemsPvt. Ltd., Pune	Post-facto approval for swap of shares to carry out the business of Software Testing Services.

The following one (1)  proposals have been advised to access automatic route. 

SlNo	Name of the applicant	Particulars of the proposal
1	M/s OctaniaAerostructure Group Pvt. Ltd., New Delhi	To issue equity shares to a foreign investor in lieu of technology transfer/knowhow to set up an aerospace machining and treatments company.

The following one (1) proposal has been advised that FIPB approval is not required:

Sl. No	Name of the applicant	Particulars of the proposal
1	M/s Advanta Pvt. Ltd.	Post-facto approval for induction of foreign investment into the company to carry out the business of Research, Production and marketing of hybrid seeds.

The following one (1) proposal has been recommended to advise the applicant that the proposal is not within the purview of FIPB:

Sl. No	Name of the applicant	Particulars of the proposal
1	M/s ArturaPharmaceuticals Pvt. Ltd., Tamil Nadu	Post-facto approval for delay of 6 months and 2 days in receiving part of the consideration for the issue of equity shares in an existing pharma company.

Decisions in the following five (5) proposals have been kept in abeyance

	Sl. No	Name of the applicant	Particulars of the proposal
	1	M/s Brampton Pvt. Ltd.	Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2		M/s Acebright (India)Pharma Pvt. Ltd., Karnataka	A foreign owned Indian pharma company to receive additional foreign investment by way of fresh issue and transfer.  Post-facto approval is also sought for an earlier transfer.
3		M/s Manipal Technologies Ltd., Karnataka	Induction of foreign investment in order to invest in the subsidiary to enter into cards payment system management and processing services for all kinds of alternate delivery channels including ATM.
4		M/s AU Housing Finance Limited, Jaipur	An Indian Housing Finance Company proposes to increase direct and indirect foreign investment upto 95%, without meeting the minimum capitalization norm of USD 50 million.
5		M/s AerriantaInternational CPT, Ireland	To set up a 50:50 JV company to engage in running duty free shops at Mumbai airport.

The following one (1) proposal has been recommended for the consideration of CCEA, as the investment involved in the proposal  is above Rs. 1200 crore.

1

M/s Axis Bank Limited,Ahmedabad

A private bank proposes to increase the foreign equity from the existing 49% to 62%.

FDI in retail: SC tells govt to amend FEMA rules in 2 weeks

Moneycontrol :Mon, Oct 15, 2012 at 15:20

Supreme Court refuses to stay FDI policy in retail sector

The Supreme Court has come to the government's rescue on Foreign Direct Investment (FDI) in the retail sector. The Supreme Court has asked the government to amend the Foreign Exchange Management Act (FEMA) regulations to implement FDI in retail

The Supreme Court has come to the government's rescue on Foreign Direct Investment (FDI) in the retail sector. The Supreme Court has asked the government to amend the Foreign Exchange Management Act (FEMA) regulations to implement FDI in retail.

The court said that the RBI has till date not amended the regulation which will legitimise government's FDI policy. The government has now asked RBI to amend FEMA regulations so that FDI in retail can be implemented. RBI will make the required changes in FEMA by November 3.

The Supreme Court has also refused to stay the government's meeting scheduled for October 19, to give licences to 50 companies for FDI in retail. The order came on a PIL against the FDI policy since the act wasn't amended.

Walmart hopes to open first India store within 18 months:WSJ

WSJ :PTI :Saturday, September 22, 2012, 14:42 [IST]

New York, Sept 21: Walmart Stores Inc has said it is capable of opening stores within 12 to 18 months in India, a media report says.

"The company is capable of opening stores within 12 to 18 months and would be seeking permission to do so from states that have already indicated their willingness to have the US retailer set up shop," Walmart Stores President and CEO for Asia Scott Price said in an interview to The Wall Street Journal.

"Two years would be a reasonable time frame in total," he added.

Price, however, said the company has not yet decided where or how many stores it would like to have in India. But he said the company expects to continue in retail its current partnership with Bharti Enterprises in a chain of 17 cash and carry stores.

Walmart Stores Inc is not in discussions with any other company for a potential retail partnership at present, Price was quoted as saying in the report. Price told WSJ that he was confident that the reform would be permanent and said the company is committed to India's long-term future.

Showing resolve for reforms, the government yesterday notified its decision to allow global retail giants like Walmart to open stores in India. With this notification, multinational retailers can invest upto 51 per cent to open stores in 10 states and UTs which, till date, have agreed to implement the decision.

Bharti for 50:50 Joint Venture With Walmart for Retail

PTI :One India :Sunday, September 30, 2012, 13:29 [IST]

New Delhi, Sep 30: Bharti Enterprises has started talks with Wal-Mart and is hoping to form a 50:50 joint venture to roll out retail outlets in India, a top company official has said.

The two companies have an equal partnership in wholesale business and the Indian partner is hopeful of replicating it in the retail business, following government's decision to allow up to 51 per cent FDI in multi-brand retail.

Bharti Enterprises Vice Chairman and MD Rajan Bharti Mittal said "talks have started" and the company is hopeful that the nature of their relationship, under which Wal-Mart became an equal partner in wholesale business despite having a chance of bringing in 100 per cent FDI, would continue.

"All I am trying to say here is that when there is opportunity to go 100 per cent in wholesale, they had 50:50 with Bharti. Now, with the opening up of the front-end, the discussions are on the table and hopefully the relationship that we have enjoyed in the last five years will continue," Mittal said in CNN-IBN TV programme Devil's Advocate.

When asked if the retail JV will still be a 50:50 one, he said: "That's what I am trying to say. That's the relationship we have despite 100 per cent being open (in wholesale)".

Mittal also dismissed various reports questioning the impact and work ethics of Wal-Mart terming them as "myth".

"That's not true to be honest. That's a myth of course. You really look at the US, where they do USD 300 billion business, they have about 11 per cent of market share. They save about USD 230 billion worth to the consumers and two million jobs.

"So, that's a myth that they are going to squeeze from both sides," he said when asked about allegations on Wal-Mart paying less to farmers and hiking prices for consumers after capturing the market.

Govt approves 23 FDI proposals worth over Rs 2,300 cr

Source:PTI:STAFF WRITER29-03-2010 14:9 HRS IST

New Delhi: The government today approved 23 Foreign Direct Investment (FDI) proposals worth over Rs 2,325.21 crore, including that of broadband services provider Tikona Digital Network and auto components maker Bharat Forge.

"The Union Government has approved 23 FDI proposals amounting to approximately Rs 2,325.21 crore," an official statement said.

The highest FDI of Rs 1,142.21 crore is likely to come into Tikona Digital Network from convertible debenture and share sale, followed Kalyani group company Bharat Forge's proposal to raise Rs 576 crore by issuing warrants to overseas investors and medical device maker Opto Circuits' Rs 376.27- crore proposal.

Also, the government has deferred eight proposals, including Essar Capital Holding, Verizon Communications and Etisalat DB Telecom, besides rejecting six FDI proposals.

However, Star India Holding has withdrawn its Rs 324.59- crore proposal, the statement said.

Liberal rules for up to Rs 1,200 cr FDI come into play

Source: PTI Mar 26 2010 , New Delhi

The government today said it has started implementing liberal FDI rules under which proposals
up to Rs 1,200 crore foreign equity would be cleared by the Finance Minister 
without seeking approval of the Cabinet Committee on Economic Affairs.

The Department of Industry Policy and Promotion (DIPP) has notified the changes in the Foreign Direct Investment (FDI) rules.

Consequently, the proposals up to the threshold of Rs 1,200 crore would be considered by the Foreign Investment Promotion Board (FIPB). Earlier, a proposal above Rs 600 crore FDI was referred to the CCEA.

While the FIPB gives its recommendations, the final clearance is given by the Finance Minister.

The new FDI norm was approved on February 11 by the CCEA, which would now consider cases of foreign equity above Rs 1,200 crore.

According to the DIPP Press Note, cases below Rs 1,200 crore can be referred to the CCEA in special cases by the FIPB or the Finance Minister. The special circumstances could relate to certain issues like national security, an official said.

Besides, foreign investors need not seek fresh approvals from the government or FIPB in sectors which have been transferred to the automatic route or where FDI caps have been removed and also for additional investment.

With the policy relaxation, the foreign companies will not be required to obtain no-objection certificates (NOCs) from domestic firms for a second time for raising investment in the ongoing projects.

As per the Press Note 1 of 2005, foreign companies needed NOC from their domestic partners for taking up activities in the same sector through joint venture or technical collaboration with other entities.
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FIPB allowed to clear FDI proposals of up to Rs 1,200 crore

Feb 12, 2010

The government has allowed the Foreign Investment
Promotion Board (FIPB), under the commerce ministry,
to clear foreign direct investment (FDI) proposals of
up to Rs 1,200 crore. At present, all project proposals
 that involve investment of above Rs 600 crore are put up
before the Cabinet Committee of Economic Affairs (CCEA) for
 approval.

Announcing the CCEA decision today, Home Minister
 P Chidambaram said the relaxation would expedite
FDI inflow. “The Rs 600-crore cap was fixed in July 1996.

 Considering the investment requirement and the inflation factors,
 it has been decided that it should be increased to Rs 1,200 crore,”
 Chidambaram said.

While the total project cost, including the foreign equity inflow,
is currently taken into consideration in deciding whether the proposal
 is to be put up forCCEA consideration, the new decision will see that
only the proposals involving a foreign equity inflow of more
than Rs 1,200 crore go toCCEA.

It was also decided that the cases where prior approval of
 FIPB or CCEA for making the initial foreign investment was
taken would not require any fresh approval if those sectors
had been brought under the automatic route in the subsequent
years.

In a separate  briefing, Commerce and Industry Minister
Anand Sharma said: “This is the first major change in the
FDI policy since 1996. It has been done to relax some of
the FDI norms. Our FDI inflows had been robust even during
the global economic slowdown and this step will augment
 growth in the flows further…. It is quite likely that the
inflows this year would exceed those received during last
financial year.” Total FDI inflows during April-December
was $20.92 billion, compared to $21.15 billion during the
corresponding period of 200809. “This only shows that pace of
inflows have been stable,” he said.