Govt clears FDI proposals worth Rs 4,340 cr

The government has cleared 19 foreign direct investment projects worth Rs 4,340 crore, including that of Tata Steel and Future Ventures.

The Foreign Investment Promotion Board (FIPB) headed by Finance Secretary Ashok Chawla, which met on December 31, however deferred decision on 16 FDI proposals, including Reliance Broadcast Network and Essar Capital Holding.

The Board also rejected two proposals, including that of B4U Television Network for induction of foreign equity to carry out business of up-linking a non-news and current affairs TV channel.

The FIPB cleared Tata Steel's Rs 1,100 crore proposal for issue of warrants as part of its fund mobilisation plan, a Finance Ministry statement said.

The board that offers a single window clearance for proposals on FDI, also approved Mumbai-based Future Ventures India Ltd request to allot shares worth Rs 300 crore to FIIs and NRIs under portfolio investment scheme.

The government has also allowed Karur Vysya Bank to issue partly paid up shares worth Rs 107.5 crore. Standard Chartered Bank (Mauritius) was also allowed to acquire equity shares worth Rs 4.5 crore of an Indian company which will undertake additional business of operating a stock exchange and specifically trade in currency and interest rate futures.

The board allowed Japan-based Yorozu Corporation to set up a joint-venture company to manufacture different automotive parts.

The company will bring in Rs 140 crore worth investment. Chawla headed panel also gave go ahead to Wireless Broadband Business Services (Delhi) to induct foreign equity worth Rs 362.78 crore to carry out internet and broadband services.

EADS Deutschland GmbH and Larsen & Toubro were also allowed to induct foreign equity up to 26 per cent to carry out manufacturing, distribution and marketing of defence related products like electronic warefare and military avionics.

FIPB, however, deferred decision on Reliance Broadcast Network's proposal of induction of overseas investment by FIIs and NRIs by way of fresh allotment of shares by private placement up to the limit of 20 per cent of the total paid up capital of the company.

The Anil Ambani-led firm is engaged in FM radio business. Decision on ABG Shipyard's proposal to enter defence contract was also deferred.

Essar Capital Holdings (India) had also sought FIPB's nod for acquisition of equity shares by way subscription to new equity shares and purchase of existing equity shares in a company engaged in telecom sector. The FIPB deferred decision on the proposal.