The government has cleared 16 FDI proposals totaling to an investment of about Rs 233 crore. The clearances have been given on the recommendations of the Foreign Investment Promotion Board (FIPB). Major companies who have been granted clearance are the Karnataka-based VRL Logistics, CIIE Initiatives and Softgel Healthcare, Chennai. Most FDIs in India are cleared through the automatic route but certain sectors like defense and telecommunications, which are considered to be sensitive, require government approval.
The largest FDI proposal, worth Rs 175 crore, has been cleared in favour of VRL Logistics which allows it to invite foreign investment in areas of transportation of goods and passengers, courier services other than postal services, aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators.
CIIE Initiatives, a trust set up by IIMA in collaboration with GOI and the Gujarat government, has been allowed to increase foreign investment to the tune of Rs 40 crore. It has also been granted permission to increase the percentage of foreign investment in its trust.
The decision on the proposal to set up a joint venture for defence manufacturing of Mahindra and Mahindra has been deferred. Bharti Shipyard's application to undertake additional defence production activity has also been deferred. Another deferred proposal is from HSBC Insurance Services Holdings, London, for infusion of foreign investment into an Indian company that does not have any operations or downstream investments. The total number of deferred proposals amount to 21.
These further include Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc, UK, Advent Business Credit Development Company, Pune and Reed Elsevier India. Next meeting of the FIPB is scheduled for March 30.
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