Government okays 16 FDI proposals worth Rs.1,153 crore
Following the recommendation of the Foreign Investment Promotion Board (FIPB) earlier this month, the government has approved 16 Foreign Direct Investment (FDI) proposals worth Rs.1,153 crore. The approved projects included applications filed by Edelweiss Tokio Life Insurance Company Ltd, Encore Asset Reconstruction Company Ltd, Akumentis Healthcare Ltd, and Elanco India Pvt Ltd. “The government has approved 16 proposals of Foreign Direct Investment amounting to Rs.1152.53 crores approximately. In addition, one proposal, viz., Cadila Healthcare Limited amounting to Rs.5000 crores, has also been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA),” a Finance Ministry statement said. Cadila’s proposal has been sent for Cabinet’s consideration as the proposed investment is more than Rs.3000 crore, the limit for FIPB’s grant. The board has deferred applications of 11 companies, while the equal number of applications was rejected. Among the deferred were IIFL Holding Ltd, Apollo Hospitals Private Ltd, BTI Payments Pvt Ltd, and Firefly Media Pvt Ltd. In its proposal, Edelweiss had sought permission to increase foreign equity from existing 26% to 49%. After getting the green signal, it can now receive up to Rs.5,400 million from Japan’s Tokio Marine & Nichido Fire Insurance Ltd. Encore Asset Reconstruction Company Ltd had sought approval for undertaking reconstruction business and offered FDI compliment instrument to its investors. Among the deferred applicants, Apollo Hospitals Private Ltd had requested for allowing foreign investments in the company’s shares, while IIFL Ltd had looked to enhance its foreign equity from 50.16% to 100% by issuing shares to FIIs. The applicants whose requests were rejected included Bloomberg Data Services India Pvt Ltd – seeking to enter into a news distribution agreement with IANS, and include media clients in its clientele. One company, Xenia Healing Centre LLP, withdrew its proposal. It was seeking an approval to accept $1.5 million from Alpha Healing Center LLC for a 96% share.
August 26, 2015 | 3:08pm IST.
to success.