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        Customs, DGFT & SEZ

        22 FDI Proposals Cleared

        November 24, 2007

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        Finance Minister, Shri P. Chidambaram has approved 22 Foreign Direct Investment proposals recommended by Foreign Investment Promotion Board (FIPB) in its meeting held on 16th November, 2007. The approval amounts to Rs. 511.4616 crore.  The proposals are related to Ministries/Departments,  namely,  Commerce, Food Processing Industries, Heavy Industry, Industrial Policy & Promotion, Information & Broadcasting, Shipping, Railways  and Economic Affairs.  The major investment proposals pertain to the Ministries/Departments of Heavy Industry, Shipping, Railways and Economic Affairs.

        The details of the proposals approved are as follows:

        l. No.

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows (Rs. In crore)

        COMMERCE

        1   

        M/s. Georgia Pacific Kemrock International Pvt. Ltd. Vadodara

        Capitalization of pre-incorporation/preliminary expenses made by the foreign investor, by way of issue of shares

        No fresh inflow

        2

        M/s. Metal One Corporation, Japan

        To set up a new WOS to undertake the activities of import, maintain stock, inventories and sale of the products within India and overseas.  Proposal attracts Press Note 1 (2005 series)

        2.90

        3

        M/s. Palfinger Asia Pacific Pte. Ltd. Singapore

        To set up a trading company with a foreign equity of upto 74% undertake Import and sale to the end users/customers  of Palfinger truck mounted kuckle-booms cranes, hook leaders, etc, and their after sale service. Proposal also involves sourcing of items from SS Sector.

        2.90

        4

        M/s. Eric Kozlowski, USA

        To set up a WOS to undertake trading of items sourced from small scale sector

        0.25

        5

        M/s. Crocs Inc.

        To set up a new Joint Venture with a foreign equity of 51% to undertake the business of single brand retail trading of footwear and apparels under the single brand CROCS

        2.04

        FOOD PROCESSING INDUSTRIES

        6

        M/s. Rejoire Natural Creations Private Limited, Mysore

        Induction of foreign equity upto 100% in a company engaged in the manufacture of items reserved for SSI sector viz., manufacture of  natural perfumes and essential oil, handmade products like bags and house hold furniture and natural soft drinks

        0.03

        HEAVY INDUSTRY

        7

        M/s. Yachiyo Industry Co. Ltd. Japan

        To set up a new WOS to undertake manufacture of plastic fuel tanks for automobiles.  Proposal attracts press Note 1 (2005 series)

        30.00

        INDUSTRIAL POLICY & PROMOTION

        8

        M/s. UPM KYMMENE OYZ., Finland

        To set up a new JV  with a foreign equity of 50% to undertake the activities of trading in recycled paper

        14.50

        SHIPPING

        9

        M/s. CWT International Pte. Ltd. Singapore

        To set up a new WOS/Joint Venture company to undertake warehousing, storage and container freight station business and other ancillary/auxiliary activities connected thereto.  Proposal attracts Press Note 1 (2005 series)

        24.00

        ECONOMIC AFFAIRS

        10

        M/s. Bluechip Corporate Investment Centre Limited, Mumbai

        Induction of FDI in an Investment company which has existing downstream companies. Conversion of operating company into an operating-cum-holding company

        20.50

        11

        M/s. Croupier Prive Private Equity Fund L.P. Delaware

         Investment of upto 5% equity in Central Depository Services Limited

        16.00

        12

        M/s. Maples ESM Technologies  Pvt. Ltd. Chennai

        Issue of shares in lieu of acquiring the business of an US company, in IT sector

        No fresh inflow

        13

        M/s. SCICOM Technologies Pvt. Ltd. New Delhi

        Issue of shares in lieu of transfer of branch office business of the same foreign investor

        No fresh inflow

        14

        M/s. PTC India Financial Services Limited, New Delhi

        Conversion of status of operating company engaged in leasing and finance into operating-cum-holding company, and induction of foreign equity by Goldman Sachs and Macqarie, up to 40%, to make downstream investments in Indian companies engaged in the energy and related infrastructure space sectors

        155.74

        15

        M/a. Angel Infin Pvt. Ltd. Mumbai

        Induction of foreign investment by IFC of upto 18% of the equity of the holding company having downstream investments in the companies engaged in the activities of share brokerage, rendering corporate and financial advisory services , portfolio brokerage, commodities broking, distribution of mutual funds and insurance products and software solution services

        152.00

        16

        M/s. Accentia Technologies Limited

        Transfer of shares by way of share swap for acquiring 3 US based companies engaged in Health BPO Services

        No fresh inflow

        INDUSTRIAL POLICY & PROMOTION

        17

        M/s. Anest Iwata Motherson Ltd.

        Conversion of operating company into operating cum holding company to make downstream investment in companies engaged in trading, marketing and servicing of air compressors and associated spare parts & accessories etc.

        No fresh inflow

        ECONOMIC AFFAIRS

        18

        M/s. HP Financial Services (I) Pvt. Ltd.

        To undertake additional activities of financing and leasing

        No fresh inflow

        19

        M/s. Smartronics Solutions India Pvt. Ltd.

        Issue of shares against advance paid for purchase of second hand machinery

        No fresh inflow

        INDUSTRIAL POLICY & PROMOTION

        20

        M/s. Rajasthan Leather Industries Ltd, Jaipur

        Issue of shares against amount received in the account of a third company due to the account of the investee company being frozen

        No fresh inflow

        RAILWAYS

        21

        M/s. Sical Infra Assets Ltd, Chennai

        Induction of foreign equity upto 26% in  investing companies in infrastructure sector

        106.6

        INFORMATION & BROADCASTING

        22

        M/s. Wai Wire and Cable Services Private Limited, USA

        To undertake additional activities of publishing specialty journal under the title "Wire Bulletin"

        No fresh inflow

        Total 511.4616 Cr

        3. The following 13 (thirteen) proposals have been recommended to be deferred:           

        Sl.No

        Name of the applicant

        Particulars of the proposal

        1.

        M/s. AVA Seeds Pvt. Ltd. Bangalore

        change in the status of the operating company into an operating cum holding company for making further downstream investments.  Proposal also  attracts Press Note 1 of 2005

        2

        M/s. Dolce & Gabbana

        To set up a Joint venture company with 51% foreign equity  to undertake the business of single brand retail trading of all kinds of fashion and lifestyle products under the brand name "Doice & Gabbana" and "DG Dolce & Gabbana"

        3

        M/s. Global Assets Holding Corporation Private Limited, Mumbai

        FDI in a holding company having subsidiaries in the Telecom Sector  

        4

        M/s. Sistema Joint Stock Financial Corp. Russia

        Increase of FDI from 10% upto 74% in a company engaged in telecom sector

        5

        M/s. Universal Success Enterprises Ltd, Tortola

        To set up a WOS to hold downstream investments in various Indian companies engaged in development of SEZs

        6

        M/.s. Universal Success Enterprises Ltd., Tortola

        To set up a WOS to hold downstream investments in various Indian companies engaged  development of infrastructure development projects, tourism, convention centre, Industrial Parks (including IT parks)  etc. in development of SEZs

        7

        M/s. Universal Success Enterprises Ltd, Tortola

        To set up a WOS to hold downstream investments in various Indian companies engaged in development of Office parks (including industrial Parks and IT Parks)

        8

        M/s. JSW Energy Ltd, Mumbai

        Induction of foreign equity in an Indian company which has existing downstream ventures. Conversion of operating company into operating cum holding company.

        9

        M/s. Bycell Telecommunications India Pvt. Ltd.

        To undertake activities of offering GSM based cellular telephone services under UAS License agreement all over India, and increase in paid up capital of the company

        10

        M/s. Grupo Omnilife S.A. de C.V. Mexico

        To establish a WOS to undertake test marketing  and manufacture, sell and distribute its proprietary nutritional food supplements and cosmetic products through its WOS in India

        11

        M/s. KNOX Holding Pte. Ltd. Singapore

        Transfer of shares held by an OCB by way of sale by a foreign investor. The promoters of the Indian Company and the new foreign investors are same.

        12

        M/s. Redington (India) Limited, Chennai

        Conversion of operating company into an operating cum holding company to make downstream investments into NBFC activities

        13

        M/s. Dumeric Holdings Private Limited, Mumbai

        Conversion of status of operating company into operating cum holding company

        The following 3 (three) proposals have been recommended to be rejected:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s. Flemingo Duty Free shop Pvt. Ltd.

        To undertake additional activities of cash and carry whole sale trading in addition to operating duty free shops

        2

        M/s. Flemingo (DFS) Pvt. Ltd.

        To undertake additional activities of selling duty free goods to hotels against duty credit in addition to operating duty free shops

        3

        M/s. Elken International  India Pvt. Ltd.

        To undertake cash and carry wholesale trading of the items earlier permitted for test marketing

        Foreign direct investment approvals across multiple sectors; several proposals deferred and some rejected, involving joint ventures. The Foreign Investment Promotion Board recommended approval of 22 FDI proposals totaling Rs. 511.4616 crore across multiple ministries, authorising new wholly owned subsidiaries, joint ventures, induction of foreign equity, share issues for business transfers and corporate reorganisation including conversions to operating cum holding companies; some proposals invoke Press Note 1 (2005 series) compliance. The Board also recommended deferral of 13 proposals-notably conversions to holding structures, single brand retail ventures, telecom and SEZ related WOS proposals-and recommended rejection of three proposals that sought to expand duty free or test marketing permissions into cash and carry wholesale activities.
                          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 across multiple sectors; several proposals deferred and some rejected, involving joint ventures.

                                The Foreign Investment Promotion Board recommended approval of 22 FDI proposals totaling Rs. 511.4616 crore across multiple ministries, authorising new wholly owned subsidiaries, joint ventures, induction of foreign equity, share issues for business transfers and corporate reorganisation including conversions to operating cum holding companies; some proposals invoke Press Note 1 (2005 series) compliance. The Board also recommended deferral of 13 proposals-notably conversions to holding structures, single brand retail ventures, telecom and SEZ related WOS proposals-and recommended rejection of three proposals that sought to expand duty free or test marketing permissions into cash and carry wholesale activities.





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