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        Customs, DGFT & SEZ

        19 FDI Proposals Approved

        January 13, 2011

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        Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on December 31, 2011, Government has approved 19 Proposals of Foreign Direct Investment amounting to `Rs.4340.77 crore approximately. 

        Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 31.12.2010.    

                    Following 19 (Nineteen) proposals have been approved.

        Sl. No.

        Name of the applicant

        Particulars of the proposal

        FDI/NRIinflows (Rs. incrore)

        CORPORATE AFFAIRS

        1

        M/s Responsive Industries Ltd., Mumbai

        To issue warrants to carry out the business ofmanufacturing PVC products such as PVC leather cloth, vinyl floorings, rigid blister films and soft sheeting.

        1.75

        DEFENCE PRODUCTION

        2

        M/s EADS DeutschlandGmbH and M/s LARSEN & TOUBRO Ltd. Mumbai

        Induction of foreign equity upto 26 per cent to carryout the business of manufacturing, distributing andmarketing of products in the market segments of electronic warfare, military avionics, mobile systems (defence related) and radars.

        7.8

        ECONOMIC AFFAIRS

        3

        M/s Future VenturesIndia Limited, Mumbai

        Induction of foreign equity in investing company byway of issue and allotment of equity shares in the IPO of the company to FIIs and NRIs under the PortfolioInvestment Scheme (PIS).

        300.00

        4

        M/s StandardChartered Bank(Mauritius) Limited, Mauritius

        To acquire equity shares of an India company whichwill undertake additional business of operating a stockexchange and specifically trade in currency andinterest rate futures.

        4.50

        5

        M/s TSW Holding GmbH, Austria

        To set up a WOS to act as an investing company.

        0.01

        FINANCIAL SERVICES

        6

        The Karur Vysya BankLtd., Karur

        To issue partly paid up shares.

        107.50

        HEAVY INDUSTRY

        7

        M/s Yorozu Corporation, Japan

        To set up a JV Company to undertake the businessof manufacture of chassis, suspension parts and otherautomotive parts.  The proposal attracts para 4.2.2.2 of Circular No. 2 of 2010 of the Consolidated FDI Policy.

        140.00

        INFORMATION & BROADCASTING

        8

        M/s A&E TelevisionNetworks, LLC, New York, USA

        To subscribe to the equity shares of an Indiancompany engaged in up-linking and down-linking of Non-News and Current Affairs Channels in India.

        22.50

        POST

        9

        M/s Federal ExpressEurope Inc, USA

        To set up a WOS to undertake the business of Courier, Express Transportation, Logistics andWarehousing Services.

        607.00

        STEEL

        10

        M/s JFE Shoji TradeCorporation, Japan

        To subscribe to the shares of an Indian companyengaged in the business of manufacturing of various types of steel products.  The proposal attracts para4.2.2.2 of Circular No. 2 of 2010 of the Consolidated FDI Policy.

        38.39

        (USD 8,577,919)

        11

        M/s Tata SteelLimited, Mumbai

        To issue warrants as part of fund mobilization plan.

        1100.00

        INDUSTRIAL POLICY & PROMOTION

        12

        M/s EnnoreAutomotive LogisticsLimited

        To make amendment in the FC approval to bring innew foreign investor in an Investing Company.

        0.39

        DEFENCE PRODUCTION

        13

        M/s Lakshmi MachineWorks Ltd., Tamil Nadu

        To undertake new activities of manufacture parts, components and accessories for aircraft and spacecraft to be supplied to civil and defence sectors.

        No FreshInflow

        MINES

        14

        M/s HindalcoIndustries Ltd., Mumbai

        Ex-post-facto approval for issuance of partly paidup shares as part of Rights Issue.

        508.63 (already brought)

        TELECOMMUNICATIONS

        15

        M/s Wireless BusinessServices Pvt. Ltd., Mumbai

        Induction of foreign equity to carry out thebusiness of internet and broadband services.

        371.12

        16

        M/s Wireless Broadband BusinessServices (Haryana) Pvt. Ltd., Delhi

        Induction of foreign equity to carry out thebusiness of internet and broadband services.

        20.36

        17

        M/s Wireless Broadband BusinessServices (Delhi) Pvt. Ltd., Delhi

        Induction of foreign equity to carry out thebusiness of internet and broadband services.

        362.78

        18

        M/s Wireless Broadband BusinessServices (Kerala) Pvt. Ltd., Delhi

        Induction of foreign equity to carry out thebusiness of internet and broadband services.

        42.64

        ECONOMIC AFFAIRS

        19

        M/s Falcon Tyres Ltd., Karnataka

        Induction of foreign equity by way of issue partlypaid up shares.

        705.40

                    The following 16 (Sixteen) proposals have been deferred:

        Sl. No

        Name of theapplicant

        Particulars of the proposal

        1

        M/s Aim Star NetworkEnterprise Pvt. Ltd., Mumbai

        Induction of foreign equity upto 100 per cent to undertake the activities of trading of items sourced from Medium & Small Scalesector.

        2

        M/s Rhodia S.A., France

        To set up a WOS to undertake the activities relating tomanufacturing chemicals relating to polyamide meant for engineeringplastics and silica.  The proposal attracts para 4.2.2.2 of Circular No. 2 of 2010 of the Consolidated FDI Policy.

        3

        M/s RahimafroozBatteries Ltd., Bangladesh

        To set up a WOS to undertake import and wholesale distribution of batteries and providing after sales services in India by a companyfrom Bangladesh.

        4

        M/s Maini PrecisionProducts Pvt. Ltd., Bangalore

        To undertake defence related additional activities of manufactureof parts and accessories of aircrafts, spacecrafts.

        5

        M/s KantilalChhaganlal Securities Pvt. Ltd., Mumbai

        Ex-post-facto approval for issuance of warrants to carry out thebusiness of Stock broking activities in cash, futures and options segment.

        6

        M/s DhunseriInvestments Ltd., Kolkata

        To issue and allot equity shares to the non-resident shareholderconsequent upon demerger.

        7

        M/s NetmagicSolutions Pvt. Ltd., Mumbai

        To increase foreign equity from 49 per cent to 74 per cent to carryout the business of ISP with gateways.

        8

        M/s Mango Holding Limited, Bangladesh

        To subscribe to equity shares of an Indian company engaged in thebusiness of manufacturing and Supply of Wireless Equipment by a company from Bangladesh.

        9

        M/s Augere Wireless Broadband India Pvt. Ltd., Delhi

        To increase foreign equity from 49 per cent to 74 per cent to carryout the business of Broadband wireless services, internet services andother telecommunication related services.

        10

        M/s ABG Shipyard Ltd., Mumbai

        To enter into Defence Contracts

        11

        M/s JubilantAeronautics Pvt. Ltd. (JAPL), Delhi

        Induction of foreign equity to carry out the manufacturing ofdifferent types of Unmanned Aerial Systems (UAS) and accessories.

        12

        M/s VerizonCommunications IndiaPvt. Ltd.

        Transfer of equity shares from non-resident shareholder to non-resident group in Telecom Sector.

        13

        M/s Pran Beverages (India) Pvt. Ltd., Kolkata

        Induction of foreign equity by a company from Bangladesh.

        14

        M/s Checkmate Services Pvt. Ltd., Gujarat

        Induction of foreign equity in a company engaged in privatesecurity services.

        15

        M/s RelianceBroadcast Network Ltd., Mumbai

        Induction of foreign investment by FIIs, NRIs by way of freshallotment of shares by private placement or otherwise and/or investments through Stock Exchanges by way of portfolioinvestments, upto the limit of 20% of the total aid up capital of thecompany. The company is engaged in FM Radio Broadcasting.

        16

        M/s Essar CapitalHoldings (India) Ltd., Mumbai

        Acquisition of equity shares by way of subscription to new equity shares and/or purchase of existing equity shares in an investingcompany engaged in the telecom sector.

                    The following 2 (Two) proposals have been rejected:

        Sl. No

        Name of theapplicant

        Particulars of the proposal

        1

        Mr. JaishankarRamchandran and Nicholls Steyn & Associates (Pty) Ltd., South Africa

        Induction of foreign equity to carry out the business of PrivateSecurity Agency.

        2

        M/s B4U TelevisionNetwork (India) Pvt. Ltd.

        Induction of foreign equity by an erstwhile OCB to carry out thebusiness of up-linking a non-news and current affairs TV channel.

                        The following 1 (One) proposal has been withdrawn from the agenda:        

        Sl. No

        Name of the applicant

        Reasons

        1

         

        M/s Forbo Holding AG,Lindenstrasse, Switzerland

        This proposal attracts para 4.2.2.2 of Circular No. 2 of 2010 of the Consolidated FDI Policy. Applicant's contention regardingtermination of agreement is contested by Indian partner.

         

        Foreign direct investment approvals authorised across sectors while several proposals deferred for policy and compliance scrutiny. Nineteen foreign investment proposals were approved by the Foreign Investment Promotion Board permitting induction of non-resident equity, issuance of warrants and establishment of wholly owned subsidiaries across multiple sectors, with sector specific conditions noted. Sixteen proposals were deferred pending further scrutiny of foreign equity increases, WOS formations, ex post approvals and participation in sensitive sectors where policy restrictions or factual disputes apply. Two proposals were rejected and one withdrawn under applicability of Consolidated FDI Policy provisions.
                          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 authorised across sectors while several proposals deferred for policy and compliance scrutiny.

                                Nineteen foreign investment proposals were approved by the Foreign Investment Promotion Board permitting induction of non-resident equity, issuance of warrants and establishment of wholly owned subsidiaries across multiple sectors, with sector specific conditions noted. Sixteen proposals were deferred pending further scrutiny of foreign equity increases, WOS formations, ex post approvals and participation in sensitive sectors where policy restrictions or factual disputes apply. Two proposals were rejected and one withdrawn under applicability of Consolidated FDI Policy provisions.





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