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        Case ID :
        Customs, DGFT & SEZ

        Government Approves Seventeen (17) Proposals of Foreign Direct Investment Amounting to about Rs. 992.61 Crore

        September 3, 2013

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        Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on July 29, 2013, the Government has approved17 Proposals of Foreign Direct Investment (FDI) amounting to Rs. 992.61crore approximately.

        In addition, one proposal viz., M/s Jet Airways India Ltd., amounting to Rs. 2057.66 crore, has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).

        Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on29.07.2013.          

                    Following 17 (Seventeen) proposals have been approved.

        Sl. No.

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows

        (Rs. In crore)

        1

        M/s Globion India Private Limited, Hyderabad

        Approval sought for additional investment from the foreign collaborator into a brownfield pharma company engaged in manufacture of poultry vaccines and post-facto approval for FDI received in September, 2012.

        1.17

        2

        M/s Celon Laboratories Ltd., Andhra Pradesh

        A brownfield pharma company to issue additional shares to a FVCI.

        12.55

        3

        M/s Smith & Nephew Pte Ltd., Singapore

        A foreign company to acquire 100% shares of an Indian pharma company engaged in the manufacture and sale of orthopaedic implants and other medical devices.

        142.29

        4

        M/s Calyx Chemicals & Pharmaceuticals Ltd.

        An Indian pharma company has sought approval for fresh public issue of shares in which foreign investors/FIIs may participate.

        200.00

        5

        M/s Fresenius Kabi (Singapore) Pte. Ltd., Singapore

        A foreign company to acquire the shares of its subsidiary Indian company from residents as well as non- residents for delisting of the Indian company.

        349.03

        6

        M/s Vakrangee Softwares Limited, Mumbai

        The applicant company to set up White Label ATMs as an additional activity

        No Fresh inflow

        7

        M/s Microsec Financial Services Limited, Kolkata

        An Indian NBFC company having NRI & FII investment to set up, own and operate white Label ATMs.

        No Fresh inflow

        8

        M/s Muthoot Finance Limited, Kerela

        An existing NBFC having FDI, to set up White Label ATMs.

         

        No Fresh inflow

        9

        M/s Bibby Financial Services (India) Pvt. Ltd., Gurgaon

        An NBFC engaged in the Factoring business has sought FIPB approval for the period of about two years from March, 2010 – March, 2012 when it was not in compliance with the minimum capitalisation norms.

        49.5

        10

        M/s Aurionpro Solutions Limited

        To acquire through its US subsidiary, the business assets of an overseas US company and also 100% ownership of a UK company through part cash and part swap of shares of the Indian company.

        Nil

        11

        M/s Indiaquotient Investment Trust, Mumbai

        A Category 1 Alternative Investment Fund Trust under the SEBI (AIF) Regulation, 2012, proposes to accept investment from a foreign investor over a period of time by issuing one or more classes of units.

        8.14

        12

        M/s Penguin Books India Ltd

        An existing publishing Company to increase the FDI from 55% to 100% through resident to non-resident transfer of equity shares

        54.64

        13

        M/s Tourvest Holdings (Pty) Ltd., Houghton

        Approval has been sought for running duty free shop at Mumbai airport and post facto approval for issue of equity shares against pre-incorporation expenses.

        18.00

        14

        M/s Sterlite Netwoks Limited

        The company which is engaged as an Infrastructure Provider Category-I (IP-I), in telecom sector proposes to undertake additional activities and consequently proposes to reduce FDI from 100% to 74%.

        Nil

        15

        M/s Maharashtra Transmission Communication Infrastructure Limited, Mumbai

        To issue FDI compliant instruments to an Indian company having foreign equity participation and other foreign investors to undertake the business of providing telecom services in the IP Category – I.

        2.85

        16

        M/s Gati Limited, Andhra Pradesh

        Transfer of shares of a Courier company from a resident to a NR logistics company.

        0.43

        17

        Mr. Ramneek Singh, Amritsar

        To set up an LLP with 93.34% foreign equity to undertake agri-export business

        154.00

                     The following 5 (Five) proposals have been deferred:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s IEnergy Wind Farms (Theni) Pvt. Ltd., Chennai

        Ex-post-facto approval for issue of shares before receipt of inward remittances.

        2

        Viacom 18 Media Pvt. Ltd.

        Deletion of one the conditions in its FIPB approval. M/s Viacom 18 is engaged in the activities of broadcasting non-news and non-current affairs television channels.

        3

        M/s BF Elbit Advanced Systems Pvt. Ltd., Pune

        To set up a new Joint Venture company to be engaged in design, development, manufacturing of defence related products

        4

        M/s Aerrianta International CPT, Ireland

        To set up a 50:50 JV company to engage in running duty free shops at Mumbai airport.

        5

        M/s Security International Services India Pvt. Ltd., Delhi

        A Security Services Company to give 49% ownership to a foreign company, by a way of fresh issue of shares.

                     The following 5 (Five) proposals have been rejected:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s Guetermann India Pvt. Ltd., Haryana

        Ex Post facto approval sought for issuance of shares on account of the assets transferred on the closure of liaison office of the company into its WoS engaged in manufacture of liaison office of sewing threads.

        2

        M/s Johnson Electronic Pvt. Ltd., Chennai

        Post facto approval for capitalization of pre-operative/pre-incorporation expenses in a customised motion solutions company engaged in the business of manufactures and trades in customized motion solutions.

        3

        M/s Elumatec India Pvt. Ltd., Mumbai

        Capitalisation of import payables for part settlement of amount due to foreign collaborator of an Indian WoS in the aluminium machinery sector.

        4

        M/s Laird Technologies India Pvt. Ltd., Andhra Pradesh

        Post facto approval for issuance of CCDs against pre-operative expenses borne by the foreign collaborator.

         

        5

        M/s Quantum Technologies, LLC, USA and M/s Quantum Technologies, INC, USA

        A proposal for simulators IT Services in defence sector with 26% Investment.

         

                    The following 01 (One) proposal has been recommended for the consideration of CCEA, as the investment involved in the proposals is above Rs. 1200.00 crore.

        Sl. No

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows

        (Rs. in crore)

        12

        M/s Jet Airways India Ltd.

        A foreign state owned Airline proposes by way of preferential allotment, to acquire 24% of equity shares of an Indian airline and subsequently transfer the same to its WoS.

        2057.66

        Decision in the following 4 (Four) proposals have been kept in abeyance

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s Lotus Surgical Specialities Pvt. Ltd., Mumbai

        An investing company to make downstream investment in an existing company through transfer fresh issue of shares of the downstream entity to a foreign Fund.

        2

        M/s Tandberg Technology India Pvt. Ltd., Bangalore

        Post facto approval for shares issued to a foreign company against pre-incorporation expenses in a computer consulting and audio/video equipments company.

        3

        M/s Nexus Flight Operation Services LLC, Saudi Arabia

        Marginal increase in FDI through fresh issue of shares of an Indian company engaged in ground handling services in airports.

        4

        M/s Bharti Shipyard Ltd., Mumbai

        Indian company in shipbuilding sector which has existing FDI through FIIs and NRIs proposes to undertake defence activities.

         

        Foreign Direct Investment approvals expand inbound investment via FIPB clearances and referrals to a higher economic committee. FIPB cleared seventeen foreign direct investment proposals amounting to about Rs. 992.61 crore across pharma, NBFCs, telecom infrastructure, publishing, duty-free retail, courier services and a foreign-majority LLP; it deferred five proposals, rejected five seeking post-facto regularisation or capitalisation of pre-operative expenses, kept four in abeyance for further scrutiny, and recommended one high-value foreign-state-owned airline investment for CCEA consideration due to the investment exceeding the threshold for FIPB-alone approval.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Foreign Direct Investment approvals expand inbound investment via FIPB clearances and referrals to a higher economic committee.

                                FIPB cleared seventeen foreign direct investment proposals amounting to about Rs. 992.61 crore across pharma, NBFCs, telecom infrastructure, publishing, duty-free retail, courier services and a foreign-majority LLP; it deferred five proposals, rejected five seeking post-facto regularisation or capitalisation of pre-operative expenses, kept four in abeyance for further scrutiny, and recommended one high-value foreign-state-owned airline investment for CCEA consideration due to the investment exceeding the threshold for FIPB-alone approval.





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