Govt clears FDI proposals worth Rs 1,027 cr

The government today said it has cleared 21 foreign direct investment (FDI) proposals amounting to Rs 1,027 crore, including those of ACB India and Oriental Tollways.

A total of 47 FDI proposals were taken up by the Foreign Investment Promotion Board (FIPB), but the board deferred decisions on 17 applications and rejected nine, the Finance Ministry said in a statement.

The board gave its approval to Oriental Tollways Pvt Ltd (Delhi and Haryana) for induction of foreign equity in an investing company. The proposal is likely to bring in FDI worth Rs 475 crore.

Darjeeling Organic Tea Estates' application for induction of foreign equity and a collaborator to carry out the business of production, distribution and export of tea was also approved by the FIPB. The firm aims at FDI worth Rs 93.37 crore.

ACB (India) Ltd, which is engaged in the business of coal washing and electricity generation, was given ex-post-facto approval for issue of warrants. The proposal is worth Rs 97.51 crore.

The other major proposals that were cleared by the FIPB include those of Netmagic Solutions, Jay Shree Tea and Industries and Augere Wireless Broadband India.

Meanwhile, the Finance Ministry said the next meeting of the FIPB chaired by Secretary of Economic Affairs R Gopalan will be held on May 20.

The ministry further said the board deferred a decision on applications by G4S Security Services (India), Delhi & Haryana, for ex-post-facto approval for induction of foreign equity to carry out the business of providing security services.

Decisions on the proposals of NCBG Holdings, Inc. (Cayman Islands), Southern CNG Automobiles India, Mango Holding Ltd (Bangladesh) and UT Starcom India Telecom, among others, were also deferred.

The proposals which were rejected include those of Telelogic ICT Services, Arshiya International and ADM Investor Services International (UK).

FDI inflows into the country during April-February, 2010-11, dipped by 29% to Rs 83,687 from Rs 117,622 crore in the corresponding period of the previous fiscal.