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33 FDI proposals cleared in August’08 |
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During the month of August 2008, the Union Finance Minister, Mr. P Chidambaram sanctioned approvals in two interavls, for 33 proposals, involving FDI amounting to Rs.1,047.57 crore.
In the first interval on 04 August 2008, 24 FDI proposals were cleared, of which, the largest was of Devas Multimedia for a value of Rs.317.85 crore. The company intends to infuse fresh foreign equity in the telecommunication sector.
The other prominent proposal receiving government approval was Mahle Gmbh, Germany, who intends to infuse Rs.140.92 crore FDI to set up a wholly owned holding company. The Ministry also cleared the application of Daiichi Sankyo Co, Japan to bring in Rs.104.63 crore, to purchase and subscribe to the equity shares and issue of warrants to two Indian companies i.e. Ranbaxy and Ranbaxy-controlled Zenotech.
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FDI Inflows |
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Total
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(Rs.Crore)
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US $ bln
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1991 |
353
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0.144
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1992 |
691
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0.264
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1993 |
1,862
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0.608
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1994 |
3,112
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0.992
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1995 |
6,485
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2.065
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1996 |
8,752
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2.545
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1997 |
12,990
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3.621
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1998 |
13,269
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3.359
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1999 |
10,167
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2.421
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2000 |
12,354
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2.873
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2001 |
16,778
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3.728
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2002 |
18,196
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3.791
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2003 |
11,617
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2.526
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2004 |
17,267
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3.754
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2005 |
19,299
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4.361
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2006 |
50,357
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11.119
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2007 |
65,495
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19.155
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2008 (Jan-May) |
31,568
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7.680
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On 14 August 2008, the Finance Ministry cleared an additional nine proposals involving FDI worth Rs.294.46 crore. Of this, the largest proposal was that of Rio Tinto Singapore Holdings Pte, a company engaged in the manufacturing of activated alumina. J P Morgan India's proposal to subscribe equity shares and to act as an operating cum holding company for downstream investments in hotel and hospitality sector was also cleared, with an FDI worth Rs.99.99 crore.
Seventeen proposals were deferred during August 2008, on recommendations of FIPB. These 17 proposals included Dow Europe GMBH, Switzerland, to set up a JV company; NSK Holdings' proposal to transfer issue of equity shares and/or compulsory convertible instruments into equity shares to a foreign collaborator. Other proposals deferred were of Pepsico India Holdings; JSW Infrastructure, Mumbai; Aditya Birla Telecom, McLeod Russel India, Kolkata; Tutorvista Global, Chennai; Quippo Telecom and Amar Ujala Publications.
It was reported that four proposals were rejected by the Finance Ministry. These included a proposal of Forum Synergies India to accept contributions from the offshore equity under the FDI route and to issue Class B Units and Class C Units to the offshore equity. Another proposal rejected was by EZY Infosoft, Chandigarh to convert from an operating company into a holding company.
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