FDI proposals worth Rs 250 cr cleared

November 7, 2006	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

The finance ministry on Monday approved 32 foreign direct investment (FDI) proposals amounting to Rs 249.81 crore, including a Rs 141-crore investment by entertainment major Walt Disney.

The other proposals include US-based real estate consultants Beekman Helix and Rs 27 crore investment by Sweden-based Volvo Bus Corp. Auto major Honda is also permitted to invest Rs 10 crore.

The major investment proposals pertain to the departments of commerce, economic affairs, heavy industry, and information and broadcasting. These proposals had been recommended by the Foreign Investment Promotion Board (FIPB) in its meeting on October 20.

The move allowed Walt Disney to induct foreign equity by way of acquisition of equity and convertible preference shares from existing share holders. The move also allowed FDI into the real estate sector, permitting US-based real estate consultants Beekman Helix India to induct foreign equity up to 100% for making downstream investment in the real estate sector.

Swedish auto biggie Volvo will now be allowed to set up a new joint venture company to carry on the business of development, assembly, manufacture, export, and sale of buses and coaches. Another auto major, Honda Motor, was allowed to enable utilisation of management expertise of Honda on spare parts amounting to an investment of Rs 10 crore.

Of the 32 proposals approved, two proposals pertained to FDI in single-brand retail.

High premium retail brand Fendi was allowed to undertake retail trading under the single brand ‘Fendi,’ while Mitsui Automotive Investment was permitted to undertake retail trading of Toyota and make cars under the same brand internationally.

However, companies like Yahoo Inc, Heidelberg International were allowed additional activities, but no fresh inflow. The proposals relate to ministries/departments, namely animal husbandry, chemicals and petrochemicals, commerce, heavy industry, industrial policy and promotion, information technology, information and broadcasting, posts, telecommunications, tourism and economic affairs.

Source from www.financialexpress.com

News Published Under:   Foreign Direct Investment in India |

Comments