31 FDI Proposals Worth Rs.3,845 Crore Cleared.

The government on Tuesday announced its approval to 31 foreign direct investment (FDI) proposals worth Rs.3,844.70 crore out of which a major chunk of the inflow is accounted for by three applications, that of Multiples Pvt. Equity Fund, Ashwell Holding Company and global tour operator Cox & Kings. According to an official statement here, among the proposals cleared based on the recommendations of the Foreign Investment Promotion Board (FIPB), Multiples Pvt. Equity Fund-Scheme-1 (Mumbai) has been permitted to issue units, make investments in securities of Indian companies and distribute income realised on its investment. The transaction is expected to result in an investment inflow of Rs.1,000 crore.

In the next largest approval, Mumbai-based Ashwell Holding Company has been allowed to induct foreign equity to carry out the business of the investing company and thereby fetch Rs.852.60 crore in foreign inflow.

Cox & Kings also received the go-ahead to allot warrants together with secured redeemable non-convertible debentures (NCDs) and/or equity shares and/or convertible securities other than warrants through a Qualified Institution Placement (QIP) to the non-resident qualified institutional buyers (QIBs) to carry out the business of leisure travel services, corporate travel services, visa processing services and foreign exchange services. The proposal is expected to bring in FDI worth Rs.750 crore.

The government has given permission to Mumbai-based Hinduja Energy (India) to induct foreign equity worth Rs.400 crore into an Indian company which does not have any operations and also does not have any downstream investments.

In the defence sector, Cayman Islands-based NCBG Holdings' proposal to invest Rs.4.45 crore was approved. The company has been permitted to induct foreign equity in an Indian company to undertake the manufacture of wiring sets, including wiring sets of a kind used in vehicles, aircraft, ships or other machinery used in the defence industry. Some of the other major proposals cleared were that of France-based Natixis Global Asset Management to invest by way of indirect foreign investment in pension fund subsidiary to fetch Rs.300 crore and Paris-based BNP Paribas S.A to set up a wholly-owned subsidiary to act as an investing company entailing an inflow of Rs.225 crore. Alongside, however, in its meeting held on July 6, the FIPB deferred its decision on 18 FDI proposals. These included Vodafone Essar's and Dish TV's proposals for transfer of shares and Walt Disney Company's application to undertake additional activity of broadcasting and downlinking.

Source : thehindu.com