FIPB Refers Rs.9,720 Cr. FDI Proposals To CCEA.

India's Foreign Investment Promotion Board or FIPB said it had referred three big overseas investment proposals amounting to Rs.9,720 crore to the Cabinet Committee on Economic Affairs or CCEA for its clearance. The three foreign firms are Reckitt Benckiser, Hero Investments and the GMR Group, reports said.

FIPC, in the meeting held on February 15, has recommended the proposals for consideration by the CCEA, as the intended capital infusion was more than Rs.1,200 crore in each case.

Hero Investments Pvt. Ltd. (HIPL) proposal for bringing in Rs.4,500 crore as induction of foreign equity in investing company was referred for clearance by the CCEA. HIPL is one of the main shareholders of the country's largest two-wheeler maker Hero Honda. It holds 17.33 per cent stake in the company as on December 31 last year.

In another proposal, global FMCG giant Reckitt Benckiser Plc. had proposed to bring in Rs.3,300 crore to fund the acquisition of Ahmedabad-based Paras Pharmaceuticals. In December 2010, the UK-based firm had agreed to fully acquire the Indian entity for Rs.3,260 crore. As per the proposal, it will make downstream investment through its subsidiary Reckitt Benckiser (Singapore) Pte Ltd.

Besides, GMR Airports Holding Ltd, which has got approval for an infusion of Rs.960 crore through issue shares, has sought permission for a further Rs.960 crore for future investments, growth plans of the Delhi and Hyderabad airports and other ancillary activities.

Source : rttnews.com