The government, based on the recommendation of Foreign Investment Promotion Board (FIPB), has approved four foreign direct investment (FDI) proposals amounting Rs 1,810 crore including that of HDFC Standard Life Insurance, Firefly Networks and Software is Correct, lnc.
The proposal of HDFC Standard Life will entail foreign investment of Rs 1,700 crore. HDFC Standard Life had approached the FIPB for transfer of its shares currently held by HDFC to Standard Life (Mauritius Holdings) 2006, thereby increasing foreign shareholding in insurance JV from 26 per cent to 35 per cent. FireFly Networks had sought approval of the existing foreign investment (50 per cent indirect) and to permit commencement of activities as a Telecom Infrastructure Provider Category-I. The proposal does not entail any new FDI.
However, out of the nine proposals which were discussed by the FIPB, four was deferred and one was withdrawn. The four deferred proposals include Aviva Life Insurance to increase the foreign shareholding from 26 per cent to 49 per cent. It also included Tata Sikorsky which had sought FIPB approval for non-resident to non-resident transfer of 26 per cent of the shares of Tata Sikorsky Aerospace from United Technologies International Corporation - Asia Private to Lockheed Martin Global, Inc. (USA). Besides, the proposal of Sharekhan and Quantum Simulators was also deferred. The one proposal which was withdrawn was that of SunE Solar BV as it came under automatic route.
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