13 FDI proposals of Rs 1,258 cr cleared

FIPB had deferred decision on eight FDI applications while two were rejected

The government on Monday said it had cleared 13 foreign direct investment (FDI) proposals of Rs 1,258 crore and referred Axis Bank's proposal for increasing foreign equity to Rs 6,266 crore to the Cabinet.      

The Foreign Investment Promotion Board (FIPB), in its September 19 meeting, had deferred decision on eight FDI applications while two were rejected, it said.      

"Based on the recommendations of the FIPB, the government has approved 13 proposals of foreign direct investment amounting to Rs 1258.53 crore approximately," the Finance Ministry said.

 

It further said the proposal of private sector lender Axis Bank, amounting to Rs 6,265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs as the investment involved in the application is above Rs 1,200 crore.

 

Axis had sought FIPB's nod to increase the foreign equity from 49 per cent to 62 per cent.

 

Among major proposals which have been approved include that of Shantha Biotechnics (Rs 755 crore), Equitas Holdings (Rs 222.8 crore) and Stork Titanium (Rs 156 crore).

 

Shantha Biotechnics has been given permission to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment.

 

Proposals on which decision was deferred include Jubilant Aeronatics, Soma Tollways, M D Shajahan Bablu, Bangladesh, and Green Destinations Holdings, Mauritius.

 

The Ministry also said that decisions on five proposals have been kept in abeyance.

 

During the April-August period of 2013-14 fiscal, FDI inflows into the country stood at USD 8.46 billion, up 4 per cent from USD 8.16 billion in the year ago period.