The government has cleared 17 foreign direct investment proposals worth Rs 3,536.40 crore (Rs 35.36 billion), including one from Italian auto maker Fiat, to invest an additional Rs 2,000 crore (Rs 20 billion) to revive its beleagured Indian subsidiary.
Another big proposal, cleared by Finance Minsiter P Chdiambaram on recommendations of Foreign Investment Promotion Board, entails an investment of Rs 1,090 crore (Rs 10.9 billion) from NRIs, PIOs and other overseas parties in ICICI Venture Funds Management Company Ltd.
Mauritius-based Essar Communications Ltd has been allowed to invest Rs 230 crore (Rs 2.3 billion) for acquiring additional stake of 5.85 per cent in Hutchison Essar Ltd.
Korea-based Mando Corporation would bring in Rs 103.40 crore (Rs 1.03 billion) to set up a new wholly-owned subsidiary in Chennai for manufacturing, marketing and distributing power steering system for Hyundai Motor India Ltd and other auto companies.
Fiat Auto Spa of Italy would bring Rs 2,000 crore of FDI to invest in Fiat India. The company's proposal was earlier cleared by the Cabinet Committee on Economic Affairs to increase its FDI from Rs 2,000 crore to Rs 4,000 crore (Rs 40 billion) at its Pune-based plant.
Loss-making Fiat India, which recently announced tie up with Tata Motors to strike synergies in operations and develop joint models, is striving to gain a foothold in India.
The proposal cleared for ICICI Venture Funds is for launching India Advantage Fund, which will pump in money in private sector investment opportunities.
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