The government on June 07, 2011, has approved 16 Foreign Direct Investment (FDI) applications worth around Rs 923.55 crore. The Foreign Investment Promotion Board (FIPB) had taken up around 38 proposals, but the board rejected 7 proposals, delayed decision on 14 proposals, and 1 recommended to the Cabinet Committee of Economic Affairs (CCEA).
The FIPB gave approval to Soma Tollways (Andhra Pradesh) for induction of foreign equity in an investing company, L&T Finance Holdings’ request for permission for pre-IPO placement of equity shares with eligible non-resident investors, the Star News Broadcasting’s (Touch Tele Content) proposal for induction of foreign capital and other major proposals that were cleared by the FIPB includes Global Gourmet (Gujarat), Park Controls & Communications (Bangalore) and Centum Electronics (Bangalore).
The FIPB delayed decision on request by Indian Rotorcraft (Mumbai) for induction of foreign equity and Precision Electronics to undertake the additional activity in the defence sector, other deferred decision on proposals were BNP Paribas SA (Paris), Sightlife USA, Southern CNG Automobiles and Natixis Global Asset Management (France). The rejected proposals were Reynders Label Printing India (Delhi and Haryana), Anuradha Holdings (Bangalore) and AOS Holding India SAS (France).
The proposal of Tata Steel and PTC India Finance Services (Delhi, Haryana) were withdrawn from the list of FIPB on the request of applicants. The proposal which was recommended to CCEA was Cals Refineries’ (Delhi, Haryana) request to issues equity shares in the form of Global Depository Receipts (GDR) against supply of refinery equipments. The FDI proposal is expected to bring Rs 1,425 crore.
In 2010-11 India attracted $19.43 billion FDI, as against to $25.83 billion in 2009-10, a sharp decline of 25%. According to the official data, FDI in January to March 2011 fell by 32% in comparison to same period of last year. Mauritius (42%), Singapore (9%), U.S.A. (7%) U.K. (5%), Netherlands (4%) and Japan (4%) are the major investors in India.
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