Based on the recommendations of Foreign Investment Promotion Board or FIPB, the Indian government on Thursday cleared 16 FDI proposals, including that of VRL Logistics, entailing total investment of around Rs.232.67 crore.
However, decision on Mahindra and Mahindra proposal to set up a joint venture for defense manufacturing and 20 other requests has been deferred, the Finance Ministry said.
The Karnataka-based VRL Logistics has got the approval for induction of foreign equity to carry out the business of transportation of goods and passengers and courier services. It has also been allowed to bring FDI in aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators. The company proposes to bring Rs.175 crore worth of FDI.
CIIE Initiatives, which plans to bring in Rs.40 crore worth FDI, has been allowed to increase foreign investment percentage in the Trust.
Mahindra and Mahindra had sought FIPB's nod to set up a JV company to develop, manufacture and provide service support for radar systems and various kinds of defense electronic systems.
Besides, decision on request of HSBC Insurance Services Holdings Ltd., London, for infusion of foreign investment into an Indian company has also been deferred. The Indian company does not have any operations and also does not have any downstream investments.
Other applications on which decisions were deferred include that of Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc., UK and Advent Business Credit Development Company, Pune.
Five proposals, including that of Bharti Shipyard to undertake additional activities of Defence Production, have been rejected by the FIPB, headed by Secretary of Economic Affairs Mr R Gopalan.
Next meeting of the FIPB is scheduled for March 30.
India allows FDI in most of the sectors through automatic route, but FIPB's approval is required in certain sensitive sectors, like defense and telecommunications.
by RTT Staff Writer
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