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Govt approves 6 FDI proposals worth Rs 732.77 crore

28 Mar 2013 Evaluate

The government has approved 6 Foreign Direct Investment (FDI) proposals amounting to Rs 732.77 crore, including Air Asia Investment, Malaysia. Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on March 6, 2013, the government has approved the six proposals of FDI.

Among the approved proposals are, AirAsia Investment, Malaysia's  proposal worth Rs 80.98 crore to set up a Joint Venture company to undertake the business of operation of scheduled passenger airlines. While, the biggest proposal that was cleared was that of Hyderabad -based Navayuga Road Projects plan to act as an investing company and to make downstream investments in its special purpose companies worth of Rs 357.60 crore. The government also cleared Hyderabad-based AET Laboratories proposal for induction of additional foreign equity in a pharmaceutical company worth Rs 5.34 crore and the proposal of Bharat Electronics, Bangalore to set up a JV company worth Rs 2.5 crore. However, the government has deferred 7 FDI proposals and rejected one.

To attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government in FY14 Budget has proposed to follow the international practice with regard to defining FDI and foreign institutional investors (FII) to remove the ambiguity in making distinction between the two types of investments. India has allowed FDI in most of the sectors through automatic route, but for certain sensitive sectors, FIPB clearance is required.

In the April-December period of 2012, the FDI inflows has declined by about 42 per cent to $16.94 billion. The sectors, which have received large FDI inflows during the nine months of the financial year are services, hotel, tourism, metallurgical, construction and automobiles. India received maximum FDI from Mauritius, followed by Japan, Singapore, the Netherlands and the UK.

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