FIPB requests FM to exempt Caltex Gas from divesting its 26% stake. |
The Foreign Investment Promotion Board (FIPB) has recommended that Caltex Gas India be exempted from divesting its 26 per cent stake to Indian residents. |
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The FIPB has now sent the recommendation to Finance Minister P Chidambaram. |
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While the FIPB is of the opinion that such an exemption has been granted to other companies in the past, a waiver of the compulsory divestment condition has not been granted for Coca-Cola, Shell India and Sodexho. Over 20 companies have had to comply with this divestment criterion. |
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In 2002, the government had permitted US-based Caltex to acquire a 49 per cent stake held by Indian shareholders in the company's Indian joint venture for a consideration of Rs 175 crore. |
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The clearance was subject to the condition that the American company offer a minimum of 26 per cent equity to Indian shareholders within five years from the date of approval. |
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The company approached the FIPB, which proposed a waiver for Caltex after the petroleum ministry, the department of economic affairs and the commerce and industry ministry agreed to the proposal. |
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Caltex Gas India is engaged in importing, storing, bottling and marketing of liquefied petroleum gas (LPG) in southern India. |
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The company's LPG bottling plants are located at Chennai and Madurai. Its import terminal is located at Tuticorin. |
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