During January 2009, the Foreign Investment Promotion Board (FIPB) cleared 77 proposals worth Rs.3,643.64 crore. These proposals were ratified by the Finance Ministry, in three phases.

The Ministry cleared 34 FDI proposals worth Rs.1,614.90 crore on 07 January 2009. Of the proposals cleared, the largest was Barwa International's Rs.400 crore proposal for converting an operating company into an operating-cum-holding company, for further downstream investments.

HBS Realtors' Rs.300 crore proposal for converting of an operating company into an operating-cum-holding company also got approvals of the Ministry. So also, did Universal Biofuels’ Rs.200 crore proposal to incorporate and make downstream investment in subsidiaries, and to issue and allot equity shares to eligible non-resident Indian investors through participation in the IPO, and/or in the form of any Pre-IPO Placement and for any preferential issue of equity shares that may be issued by the company at a future date.

Twelve FDI proposals worth Rs. 751.51 crore were approved by the Finance Ministry, on 22 January 2009. The largest of these proposals was one by Wire and Wireless, to raise Rs.450 crore by issuing partly paidup equity shares. Amritjal Venture's proposal entailing an inflow of Rs.300 crore by converting the operating company into operating-cum-holding company was also approved. Besides, Delhi-based AFC Network's proposal to induct Rs.1.5 crore of foreign equity by transfer of equity shares from the initial subscriber and by allottment of fresh equity shares for undertaking down-linking of non-news and current affairs channels, was also approved by the Ministry.

On 28 January 2009, another 31 proposals involving FDI worth Rs.1,277.23 crore were cleared by the Finance Ministry. The largest of these proposals was Ramky Enviro Engineers' Rs.320 crore proposal for converting operating company into an operating-cumholding company. The Finance Ministry accorded post facto approval to Morgan Stanley Financial Service's Rs.100 crore proposal.

In all, 35 proposals were deferred during January 2009 on recommendations of the FIPB.

These proposals included one from Loro Piana International SA, to set up a JV for retail trading and owning 51 per cent equity in the JV, JT International's proposal to increase its foreign shareholding from 50 per cent to 74 per cent. Dow Jones & Company Inc., Broadband Pacenet (India) Mumbai, Mahindra

Forgings, and Noida Softwares Technology Park were amongst others whose proposals were deferred. The Finance Ministry also deferred a decision on FDI schemes of Mallcom India, Comecer SPA, Tanla Solutions, Akbar Info-Media and DSP Technology.

Eleven proposals were reported to have been rejected. Amongst these, were G4S Corporate's proposal for converting its existing status of company into foreignowned Indian holding company to make downstream investments, Tata Investment Corporation's proposal to issue Zero Coupon Convertible Bonds with detachable warrants to the equity shareholders of the company, on a right basis, which would also include NRI's. Vatika's proposal to retain the completed non- FDI compliant projects/ assets and to exercise the option to retain the incomplete non-FDI complaint projects/ assets, post infusion of FDI from various sources, was also rejected.

Other developments:

After a gap of few months, January 2009 saw the government relaxing FDI norms in a few more sectors. In mid-January, the Finance Ministry allowed 100 per cent FDI in Printing the Facsimile editions of foreign newspapers, thus allowing newspapers to publish their foreign editions in India. Additionally, this clearance will also make it possible for media firms in India to publish local editions of international magazines such as Fortune and Forbes.

While there has been some respite to certain sectors, the Aviation sector is still pinning its hopes on the Aviation Ministry's proposal, which will allow foreign airlines to pick up to 25 per cent stake in domestic airlines. The proposal is still under the consideration of the Central government.

The government has also decided to prohibit the real estate developers to own commercial projects such as malls in the same company that develops projects for which the companies have accepted foreign investment. Instead, the realty companies will have to set up a SPV to manage such projects.

Despite global financial crisis and economical slowdown, the Indian government is confident of receiving $30 billion worth of FDI during the current fiscal - 2008-09. The confidence has emanated from the fact that during the first seven months (April - October 2008) of the fiscal, the country has received $18.7 billion of FDI, more than double the amount received during the same period of the preceding fiscal. The government's 2008-09 target for FDI is $ 35 billion.