Govt clears 12 FDI proposals worth Rs 2,300 cr

The government today cleared 12 proposals for foreign direct investment (FDI) worth over Rs 2,300 crore, the bulk of which is expected to come from KKR Mauritius Cement Investments and Shriram City Union Finance.

"Based on the recommendations of Foreign Investment Promotion Board (FIPB)... The government has approved 12 proposals of FDI amounting to Rs 2,305.84 crore," the Finance Ministry said in a statement today.

KKR Mauritius Cement Investments has proposed to invest Rs 715 crore through induction of foreign equity in an investing company, while Shriram City Union Finance's proposal was for FDI of Rs 697 crore by issuing warrants.

US-based Alexandria Real Estate Equities plans to set up a unit to operate and manage fully-furnished, staffed and equipped facilities for medical professionals at an investment of Rs 500 crore, the ministry said.

The government has also okayed Toyota Tsusho Corp's Rs 30 crore FDI to set up a joint venture company for manufacturing, fabricating and processing of steel products and components for automobiles.

The ministry deferred a decision on 15 proposals and rejected three. The deferred proposals came from a host of telecom, media and realty companies.

This includes DLF Limitless Developers' proposal to transfer shares from non-resident to resident, Etisalat DB Telecom's plan to transfer shares from resident to non-resident and Zee Entertainment Enterprises' transfer of shares by way of share swap.

Proposals of Lakshmi Machine Works, Kal Media Services, Jeevan Telecasting, Karuturi Global, Advanta India, Verizon Communications India, Pran Beverages, Bharat Broadcasting Network, Asian Genco, Essar Capital Holdings, Alan Dick & Co, and Starcom India Telecom were also deferred.

The companies whose proposals were rejected were DVA India Chemicals, Alligator Ventilfabrik GmbH and Simplast India.