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Govt clears major FDI proposals

October 18, 2006: The Government approved three foreign companies to enter single brand retailing through the joint venture route by setting up subsidiaries.

Spain-based porcelain statue maker Lladro Commercials have been allowed to invest Rs.5.85 crore for increasing its equity in Spa Agencies (India) from 26 per cent to 49 per cent. Simultaneously, Sri Lanka-based Damro Exports Private Ltd has received the green signal to pick up 51 per cent stake in Chennai-based Damro Furniture Private Ltd to retail furniture under Damro brand name. The Government has also allowed Italian firm Rino Greggio to set up a joint venture for selling silverware and other allied products.

The Finance Minister, Mr P. Chidambaram, has cleared a total of 22 foreign direct investment (FDI) proposals including these three retail proposals involving a total FDI worth Rs.896.25 crore.

Mauritius-based Bijlee Bharat Holdings' proposal to set up a wholly-owned subsidiary in Hyderabad for investing in multiple power plants involving FDI worth Rs.307.94 crore too was okayed by the Minister.

The Minister also approved Japan-based NSK Ltd's proposal to invest Rs.41.25 crore to set up a new joint venture in Chennai to manufacture magnetic clutch bearings and ball bearings. UK-based Alpha Airport Group's proposal to establish a wholly-owned subsidiary for setting up duty-free shops, flight kitchens and food and beverage outlets at airports in the country at an investment of Rs.22.5 crore was also cleared.

Netherlands-based Diageo Highlands Holdings' proposal to set up a joint venture for manufacturing liquor too has been approved. The Minister also gave approval to Aircel Cellular Ltd and Dishnet Wireless Ltd to accord conformity to the acquisition of 73.99 per cent stake by Mauritius-based Global Communications Service Holdings, which is owned by Malaysian telecom firm Maxis.

Source: Hindu Business Line