17 FDI proposals of Rs 3,536 cr cleared

Italian auto major Fiat SPA's proposal to enhance investment in its Indian arm, Fiat Indian Automobiles Pvt Ltd, by Rs 2,000 crore is among 17 foreign direct investment proposals cleared by Finance Minister P Chidambaram.

The 17 proposals involve a total FDI inflow of Rs 3,536 crore and are recommended by the Foreign Investment Promotion Board (FIPB) for clearance.

Fiat would be making the investment to manufacture fuel efficient passenger cars in Pune.

US-based Fox International Channels' proposal to invest Rs 1.5 crore through its Indian arm to undertake television broadcasting business of non news and current affairs television in India has also been cleared by the FIPB.

The media firm proposes to invest up to 100 per cent in equity and preference shares of a company that has been proposed to undertake television broadcasting business.

Mauritius-based Essar Telecommunications' offer to invest Rs 230 crore was also cleared by the FIPB. The company proposes to act as a foreign-owned Indian holding company to further acquire additional 5.85 per cent stake in Hutchinson Essar Ltd.

The board has also approved FDI proposals of Rs 1,090 crore by NRIs, persons of Indian origin (PIOs) and other overseas investors in ICICI Venture Funds Management Company Ltd.

The investment would go towards the setting up of an India Advantage Fund, a contributory trust to invest in private opportunities. ICICI would transfer the domestic unit holding to NRIs, PIOs or overseas investors.

Korea-based Mando Corporation's pan to set up a new wholly owned subsidiary in India at an investment of Rs 103.40 crore to manufacture, distribute and sell steering systems has been given a green signal.

The company wants to set up a subsidiary in Chennai to manufacture column-assisted electronic power steering systems for Hyundai Motor India Ltd (HMIL) and other automobile manufacturers in India.

Mando would also be importing and selling manual or power steering systems to HMIL.

The FIPB has also approved Malaysia-based MITCO Labuan's proposal to set up a wholly owned subsidiary at an investment of Rs 2.25 crore to undertake cash and carry wholesale trading of various products.