FIPB clears 10 FDI proposals worth Rs 2,858 crore

Holcim-Ambuja share swap deal referred to CCEA; Sharekhan's proposal for transfer of CCDs and CCPs deferred

The Foreign Investment Promotion Board has cleared 10 FDI proposals worth Rs 2,858 crore, and referred the Holcim-Ambuja deal to the CCEA.

"The Government has approved 10 proposals of Foreign Direct Investment (FDI) amounting to Rs 2857.83 crore," a finance ministry statement said today.

The proposal of Ambuja Cements for acquisition of 24 per cent shares in its holding company Holcim (India) Ltd for a share swap worth Rs 3,500 crore has been referred to the Cabinet Committee on Economic Affairs (CCEA).

FIPB has deferred 18 proposals including that of Sharekhan Ltd for transfer of compulsory convertible debentures (CCDs) and compulsory convertible preference shares (CCPs), held by IDFC Ltd to Baring Private Equity.

The proposal of Ostro Energy to invest Rs 1,400 crore over the next 4-5 years in wind energy assets was cleared by the FIPB in its February 17 meeting.

The inter-governmental panel, chaired by Economic Affairs Secretary Rajiv Mehrishi, also cleared the pharma firm IPCA Laboratories' proposal to hike foreign institutional investment (FII) to 35 per cent entailing an investment of Rs 900 crore.

The proposal of Reckitt Benckiser (India) to acquire 24.88 per cent share of Reckitt Benckiser Healthcare India Ltd from its foreign investor was also approved. The deal would result in a foreign fund outflow of Rs 750 crore.

Bangalore-based pharma firm Syngene International's proposal to inject Rs 380 crore into the company through 10 per cent foreign equity participation has also been cleared.

FDI proposals under approval route are cleared by the FIPB. However, those worth above Rs 1,200 crore are given final clearance by the CCEA.