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        Case ID :

        18 Proposals of Foreign Direct Investment Amounting to 2126.20 Crore Approved

        November 25, 2011

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        Press Information Bureau
        Government of India
        Ministry of Finance

        25-November-2011 19:01 IST

        Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on November 15, 2011, Government has approved 18 Proposals of Foreign Direct Investment amounting to ` 2126.20 crore approximately. 

        In addition, one proposal viz (i) M/s Unitech Wireless (TN) Pvt. Ltd., amounting to ` 8250 crore, has been recommended for consideration of Cabinet Committee on Economic Affairs.

        Following are the Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 15.11.2011   

        Following 18 (Eighteen) proposals have been approved.

        Sl.No.

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows (in crore)

        CORPORATE AFFAIRS

        1

        M/s Amar Remedies Ltd., Mumbai

        To issue secured redeemable non-convertible debentures along with warrants to undertake the business of manufacturing and marketing of personal care and OTC products.

        170.00

        ECONOMIC AFFAIRS

        2

        M/s VNR Infrastructures Limited, Hyderabad

        Ex-post-facto approval for transfer of shares by way of share swap.  The company is engaged in the business of infrastructure contracting activities.

        No Fresh Inflow

        3

        M/s NJS Engineers India Pvt. Ltd., Pune

        Ex-post-facto approval for transfer of shares held by NRI on non-repatriation basis to a person resident outside India on a repatriation basis.  The company is engaged in the business of Construction Development projects, including housing, commercial premises, resorts, educational institutions.

        0.01

        4

        M/s Oxygen Bio Research Pvt. Ltd.

        Ex-post-facto approval for transfer of non-repatriable shares held by the NRIs to a foreign company.  The company is engaged in medical research and specializing in drug discovery to find cures in various ailments such as cancer, heart diseases, etc.

        Nil

        5

        M/s Lanco Group Ltd.

        Transfer of shares under the scheme of demerger.  The company is engaged in the business of supplying products and material on turnkey basis and project management consultancy services with respect to various infrastructure projects. In addition, the Indian company has downstream investments in various companies engaged in infrastructure related sectors such as power generation, coal mining for captive consumption, etc.

        Nil

        FINANCIAL SERVICES

        6

        M/s Grameen Financial Services Pvt. Ltd., Bangalore

        Ex-post-facto approval for issuance of equity shares to the investor in lieu of dividend payout to the investor to carry out the business of providing credit/financing.

        2.59

        INFORMATION TECHNOLOGY

        7

        M/s SDG Software India Pvt. Ltd., Delhi

        Ex-post facto approval for the allotment of partly paid up shares which were later made fully paid up within two month.  The company is engaged in the business of Software Development and Support Services.

        3.00

        STEEL

        8

        M/s Stewart and Lloyds of India Ltd., Kolkata

        To issue warrants to carry out the business of manufacturing of Fabricated Structural Products of Iron ore and Steel and Construction and maintenance of Power Plants.

        0.37

        9

        M/s Thomas Lipinski, Mr. Enrico Borgwardt, Germany and Mr. Shekhar Khanderao Bhagwat, Mumbai

        To set up a LLP with foreign equity of 98 per cent to undertake the business of manufacturing of fabricated structural metal products.

        0.98

        REVENUE

        10

        M/s DFASS TRGB LLC, USA

        Induction of foreign equity in an Indian company to carry out the business of setting up, running and maintenance of duty free shops & outlets at airport and other places outside the customs territory of India or any other place in India as may be permitted.

        12.5

        11

        M/s In Flight Services Worldwide LLC, USA

        Induction of foreign equity in an Indian company to carry out the business of retail sale of duty free goods on international flights.

        0.50

        COMMERCE

        12

        M/s Multi Commodity Exchange of India Ltd.

        Sale of equity shares through an Initial Public Offering to the prospective purchasers which may be (i) resident Indian nationals, and (ii) SEBI registered FII’s.  The company is engaged in the business of trading in commodities.

         

        INFORMATION & BROADCASTING

        13

        M/s NDTV Lifestyle Ltd.

        Increase in foreign equity upto 100 percent.  The company is engaged in the media industry for up-linking, producing, distributing and broadcasting non-news and non- current affairs TV channels.

        Nil

        14

        M/s Dish TV India Ltd.

        To increase foreign equity to produce telecommunication equipment and provide management and marketing of ‘agrani’ services, i.e. in the area of Mobile Satellite Communications.

        980.00

        CONSUMER AFFAIRS

        15

        M/s Jindal Agro Processing Pvt. Ltd., Gujarat

        Transfer of shares by way of share swap.  The company is engaged in the business of manufacture and export of ready to eat food.

        Nil

        TELECOMMUNICATIONS

        16

        M/s Sprint International Holding Inc., Overland Park K.S

        Induction of foreign equity into an Indian company to provide wireline-based national long distance, international long distance and Internet services as well as advanced managed network services to companies operating in India.

        6.25

        INFORMATION & BROADCASTING

        17

        M/s Cyquator Media Services Pvt. Ltd., Mumbai

        Scheme of merger relating to company engaged in the business of providing back-end information technology services and sale of advertisement space in various modes of media.

        Nil

        ECONOMIC AFFAIRS

        18

        M/s Ventureast Life Fund III LLC, Mauritius

        Induction of foreign equity in a trust.

        950.00

         

         The following 16 (Sixteen) proposals have been deferred:

        Sl.No

        Name of the applicant

        Particulars of the proposal

        1

        M/s Unifior Vegetables LLP, Mumbai

        Induction of foreign equity in LLP to carry out the business of Food Processing.

        2

        M/s Jalgaon Investments Pvt. Ltd., Mumbai

        Ex-post-facto approval to act as an operating cum investing company.

        3

        M/s CLSA Singapore Holdings Pte Ltd., Singapore/ M/s CLSA Limited, Hong Kong

        Induction of foreign equity in an investing company to carry on the business of process outsourcing services for clients, both domestic and offshore.

        4

        M/s Religare Capital Markets (India) Ltd., Delhi

        Induction of foreign equity in an investing company.

        5

        M/s Copper Beech Infrastructure Pvt. Ltd., Delhi

        Repatriation of FDI.  The company is engaged in the business of educational infrastructure.

        6

        M/s Bossi Moda India Pvt. Ltd., Delhi

        Ex-post-facto approval to issue and allot equity shares against the pre-incorporation expenses. The company is engaged in the manufacturing of leather footwear as a small scale industries.

        7

        M/s Surya Chambal Power Ltd., Mumbai

        Ex-post-facto approval for issue of equity shares against sale of future carbon credits.  The company is engaged in the business of Generation of power from agro waste residue biomass.

        8

        M/s M and C Rakindo Hospitality Pvt. Ltd., Coimbatore

        Ex-post-facto approval to issue and allot partly paid up shares to carry out the business of development, construction ownership, management, sale and/ or lease of hotel projects in India.

        9

        M/s Omnimedia SL

        To amend the Clause 2 of the FC approval to undertake the business of publishing/ printing of scientific and technical magazines/ specialty journals/ periodicals in the name and style of “Energetica-India” and circulation of its digital version.

        10

        M/s Rahimafrooz Batteries Ltd., Bangladesh

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

        11

        M/s Flemingo Dutyfree Shop Pvt. Ltd.

        To increase foreign equity upto 100% to carry out the business of duty free shop.

        12

        M/s Springer India Pvt. Ltd.

        To increase foreign equity upto 100% to carry out the business of publishing and re-printing of scientific, technical, medical and other no-fiction books in electronic and printed forms in any language.

        13

        M/s Springer Editorial Services Pvt. Ltd.

        To increase foreign equity upto 100% to carry on the business of  publishing services, content, development, content management, content outsourcing, providing a comprehensive service including data conversion, editorial services, pre-press, pre-media services, digital communication services, data based management, digitization services, data based engineering

        14

        M/s Reed Elsevier India Pvt. Ltd.

        To undertake the additional activity relating to the business of publishing and co-publishing (in and outside India), including digital publishing, printing, reprinting, adaptation, article reprinting, repackaging, translation, distribution of scientific, technical, medical, specialty and research journals/magazines/periodicals in any media including print media

        15

        M/s Cordia International Corp., USA

        To increase shareholding from 49 percent to 74 percent to carry out the business of telecommunication and act as a services provider. Services include but are not limited to the provision of IP communication services and related services, technology related products and services, web hosting, collection and ISP services.

         The following 11 (Eleven) proposals have been rejected:

        Sl.No

        Name of the applicant

        Particulars of the proposal

        1

        M/s Bharti Shipyard Ltd., Mumbai

        To undertake additional activities of Defence Production.

        2

        M/s KSPG Automotive India Pvt. Ltd., Pune

        To jointly hold with KOEL one preference share of KPL, which is not fully, compulsorily and mandatorily convertible.

        3

        M/s Astonfield Renewables Pvt. Ltd.

        Ex-post-facto approval for the downstream investments made and to act as operating cum investing company.  The company is engaged in the business of providing consultancy services and marketing research.

        4

        M/s Techno Relief Overseas (India) Pvt. Ltd.

        Ex-post-facto approval for NRI investment in the company.  The company is engaged in the business of trading (export and domestic wholesale) in relief materials.

        5

        M/s Summit Partners OGN (Luxco) S.C.A, Grand Duchy Luxembourg

        Transfer of shares by way of share swap to carry out the business of providing Technical Interface/Platform between Merchants and multiple Banks.

        6

        M/s Munoth G’Five Telecom, Chennai

        Induction of foreign equity to carry out the business of whole sale distribution of mobile phones, laptops, pads and value added service for mobile phones.

        7

        M/s Axiata Investments 2 (India) Ltd., Mauritius

        Induction of foreign equity in an Indian company engaged in the business of Telecom Service Provider.

        8

        M/s Amann Sewing & Embroidery Threads Pvt. Ltd.

        Extension of period of test-marketing.  The company is engaged in the business of Import of Sewing Threads and to sell the same to domestic end users (Test marketing).

        9

        M/s Indusind Media & Communication Ltd. (IMCL)

        Conversion of CNCRPS.  The company is engaged in the business of Cable Network Distribution.

        10

        M/s I-Velocity India Pvt. Ltd. 

        To make an amendment in clause 2 of existing FC approval to allow for undertaking additional activities.

        11

        M/s Befesa Infrastructure India Pvt. Ltd.

        Ex-post-facto approval for capitalization of ` 10.00 lakh towards issue of 10,000 equity shares against the investment made by Befesa Agua SA Spain.

        Construction, erection and installation of desalination plants.

        The following 2 (Two) proposals have been withdrawn from the agenda:    

        Sl.No

        Name of the applicant

        1

        M/s Ventureast Trustee Co Pvt. Ltd. (No. FC.II: 160/2007)

        2

        M/s Karuturi Global Ltd., Bangalore

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

        Sl. No

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows (in Crore)

        1

        M/s Unitech Wireless (TN) Pvt. Ltd.

        Induction of foreign equity to carry out the business of providing unified access services.

        8250.00

        The following 01 (One) proposal has been recommended for the consideration on file after the receipt of inputs from concerned departments:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows (in Crore)

        1

        M/s Vodafone Essar Ltd.

        Transfer of shares from Resident to NR to carry out the activities relating to Telecommunication.

        2835.00

        DSM/GN

        Foreign direct investment approvals granted, multiple proposals deferred or rejected, and one high value proposal sent for higher level consideration. The Government, on FIPB recommendations, approved 18 FDI proposals totalling approximately 2126.20 crore, covering equity inductions, issuance of debentures with warrants, share transfers (including ex post facto approvals), demerger and share swap transfers, and induction of foreign equity across multiple sectors. Sixteen proposals were deferred pending further examination, eleven were rejected, two withdrawn, one recommended to the Cabinet Committee on Economic Affairs due to high investment, and one held on file for departmental inputs.
                          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 granted, multiple proposals deferred or rejected, and one high value proposal sent for higher level consideration.

                                The Government, on FIPB recommendations, approved 18 FDI proposals totalling approximately 2126.20 crore, covering equity inductions, issuance of debentures with warrants, share transfers (including ex post facto approvals), demerger and share swap transfers, and induction of foreign equity across multiple sectors. Sixteen proposals were deferred pending further examination, eleven were rejected, two withdrawn, one recommended to the Cabinet Committee on Economic Affairs due to high investment, and one held on file for departmental inputs.





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