The government today cleared 11 proposals, entailing total foreign direct investment (FDI) of Rs 182.78 crore, including that from 9X Media to increase foreign equity participation to up to 100%.
The Foreign Investment Promotion Board (FIPB), however, deferred decisions on nine proposals, including those of Vodafone Essar and Mauritius-based Ventureast Life Fund III LLC, and rejected six applications, an official statement said.
Media firm 9X Media Pvt Ltd had sought FIPB nod to increase foreign equity participation from 80% to up to 100% and to make downstream investments up to 100%. The proposal, if implemented, would attract Rs 26.20 crore worth FDI.
The board, headed by Economic Affairs Secretary R Gopalan, gave its nod to Kolkata-based Pran Beverages' proposal for FDI worth Rs 16.45 crore, by way of induction of foreign equity by a company from Bangladesh.
DMV-Fonterra Excipients' proposal which entails induction of foreign investment of up to 100% in the capital of a newly incorporated LLP engaged in the business of manufacturing and sale of pharmaceutical excipients, was also approved. This would bring in FDI worth Rs 39.36 crore.
Further, the proposal of Mumbai-based Ace Derivatives and Commodity Exchange to transfer equity shares of the company to FIIs, such that the holding of each FII will not exceed 5% of the equity of the company. The proposal is worth Rs 10.53 crore.
On the other hand, the board deferred a decision on Vodafone Essar's request to transfer shares from a resident to a non-resident to carry out activities relating to its telecommunications business.
A decision on induction of foreign equity in a trust by Mauritius-based Ventureast Life Fund III LLC and Singapore-based InterCall Asia Pacific Holdings Pvt Ltd to set up a WOS to undertake the business of providing audio, video and web conferencing services for business, commercial, banking and other establishments was also deferred.
The proposals that were rejected include those of Chennai-based GV Films Ltd and Hughes Communications India Ltd.
Further, the board also recommended proposal worth Rs 1,200 crore for consideration of the Cabinet Committee of Economic Affairs (CCEA). This include proposals of Walt Disney Company (Southeast) Asia Pte Ltd, Gurgaon-based Grid Equipments and Energy Grid Automation Transformers and Switchgears India.
The next meeting of the FIPB would be held on November 11.
