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        Customs, DGFT & SEZ

        24 FDI Proposals Approved

        August 6, 2008

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                    Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on 29th July, 2008, Finance Minister, Shri P. Chidambaram has approved 24 Proposals of Foreign Direct Investment amounting to Rs. 753.114 Crore approximately.  The proposals relate to Ministries/Departments, namely, Chemical & Petrochemicals, Commerce, Heavy Industry, Industrial Policy & Promotion, Information & Broadcasting, Information Technology, and Telecommunication.

        Details of Proposals approved as follows:

        Sl. No.

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows (Rs. In crore)

        CHEMICAL & PETROCHEMICALS

        1

        M/s Heurtey Petrochem S.A. France

        To establish second subsidiary in India by way of acquisition of foreign company.  Proposal also attracts Press Note 1 of 2005.

        No Fresh Inflow

        COMMERCE

        2

        M/s Black & Decker Overseas Holdings B.V. Netherlands

        To set up a company in India to carry out the business of manufacture.  Proposal attracts Press Note 1 of 2005.

        25.974

        3

        M/s Protech Biosystems Pvt. Ltd., Gurgaon

        Transfer of 100% equity to a Foreign Company by way of share swap.

        No Fresh Inflow

        4

        M/s Piquadro S.p.A

        To set up a Joint venture directly or through its subsidiary with 51% equity participation to carry out the Single Brand retail.

        1.53

        5

        M/s Ferragamo International B.V.

        To acquire the 51% equity of the Indian Company for Retail trading of products under the Single Brand.

        30.00

         ECONOMIC AFFAIRS

        6

        M/s Daiichi Sankyo Company, Japan

        To purchase and subscribe to the equity shares of the two Indian companies and issue of warrants.  Proposal also attracts Press Note 1 of 2005.

        104.63

        7

        M/s Suyash Software Pvt. Ltd., Nagpur

        To acquire fully paid equity shares by way of Share Swap.

        No Fresh Inflow

        HEAVY INDUSTRY

        8

        M/s Tokai Rika Co. Ltd., Japan

        To set up a JV company to manufacture, selling and exporting automotive parts.  Proposal attracts Press Nlote 1 of 2005.

        35.00

        INDUSTRIAL POLICY & PROMOTION

        9

        M/s Plasticos Erum S.L. Spain

        To establish WOS for trading, manufacturing and any other sector/activity, including trading of items sourced from the small scale sector.

        1.65

         INFORMATION & BROADCASTING

        10

        M/s Scorpio Television India Pvt. Ltd., New Delhi

        Ex-post facto approval to continue to hold equity shares by the Foreign Investor in the issued and paid-up share capital of the Indian company.  The company is engaged in Television programs, Television films, cinematographic films, video films, video software and computer software.

        1.00

        CHEMICAL & PETROCHEMICALS

        11

        M/s C.R. Seals India Pvt (Now SKF Technologies (India) Pvt. Ltd.)

        To issue partly paid up equity shares to Foreign collaborators.

        35.04

        ECONOMIC AFFAIRS

        12

        M/s exl Service.Com (I) Pvt. Ltd.

        Conversion of an operating company into an operating cum holding company.

        No Fresh Inflow

        13

        M/sReligare Enterprises Ltd.

        To substitute one of the clause of the FC approval.

        Not indicated

        HEAVY INDUSTRY

        14

        M/s Autoline Industries Ltd.

        To raise funds by issuing Warrants Convertible into equity shares.

        No Fresh Inflow

        15

        M/s Honda Siel Cars India Ltd.

        Conversion of an operating company into an operating cum holding company to make downstream investment.

        No Fresh Inflow

        INDUSTRIAL POLICY & PROMOTION

        16

        M/s Gujarat Pagutham Energy Corp Pvt. Ltd.

        Conversion of an operating company into an operating cum holding company to make downstream investment.

        No Fresh Inflow

        17

        M/s Geomysore Services (India) Pvt. Ltd.

        Conversion of an operating company into an operating cum holding company to make downstream investment.

        No Fresh Inflow

        18

        M/s Parfums Nabeel International Pvt. Ltd

        Deletion of condition of compulsory license and Export obligation

        No Fresh Inflow

        19

        M/s Takata India Pvt. Ltd.

        To carry out the additional activities in automobile sector.  The proposal attracts Press Note 1 of 2005.

        21.17

        INFORMATION & TECHNOLOGY

        20

        M/s US Technology International (P) Ltd.

        Conversion of an operating company into an operating cum holding company to make downstream investment.

        Not furnished

        TELECOMMUNICATION

        21

        M/s Devas Multimedia Pvt. Ltd.

        To infuse fresh foreign equity in telecommunication sector.

        317.85

        ECONOMIC AFFAIRS

        22

        M/s Top Security Ltd., Mumbai

        Downstream Investment in its 10 Subsidiaries and Preferential allotment of equity shares.  

        21.25

        23

        M/s Mahle Gmbh, Germany

        To set up a Wholly Owned Holding company.

        140.92

        HEAVY INDUSTRY

        24

        M/s Perfect Circle India Ltd., Maharashtra

        Induction of FDI up to 51% in a company engaged in manufacture of internal combustion piston engines and other parts and accessories.  Proposal attracts Press Note 1 of 2005.

        17.00

                    The following 11 (Eleven) proposals have been deferred:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s Dow Europe GMBH, Switzerland

        To set up a JV company.  Proposal attracts Press Note 1 of 2005.

        2

        M/s VLCC Health Care Ltd., Delhi

        Conversion of Share Warrants into equity shares and redemption of Preference shares.

        3

        M/s NSK Holdings Pvt. Ltd., Mumbai

        Transfer, issue of equity shares and/ or compulsory convertible instruments into equity shares to Foreign Collaborator.  To acquire the status of foreign owned Indian holding company and to make downstream investment.

        4

        M/s KPIN Capital Advisors Pvt. Ltd.

        To induct FDI in a investment holding company by way of issue of Compulsory Cumulative Convertible Preference shares to make downstream investments in listed as well as equity linked securities in different sectors.

        5

        M/s Pepsico India Holdings Pvt. Ltd.

        To increase the approved equity from US$ 405 Million to US$ 455 Million.  The initial proposal was approved by FIPB/CCEA.

        6

        M/s Quippo Telecom Infrastructure Ltd.

        To increase foreign equity from 65.63% to 82.55% in Telecom Sector.

        7

        M/s Asia Motorworks Holdings Ltd., Mumbai

        Induction of foreign equity by way of subscribing to fully and compulsorily convertible debentures and conversion of operating company into an operating cum holding company.

        8

        M/s JSW Infrastructure Ltd., Mumbai

        Ex-post-facto approval for having undertaken the activity of holding company.

        9

        M/s Amar Ujala Publications Ltd.

        Amalgamation of two companies consequent upon the order of Hon'ble High court and induction of fresh FDI

        10

        M/s Broadband Pacenet (India) Pvt. Ltd., Mumbai

        Induction of foreign equity by way of subscribing to or acquisition of shares up to 74% equity of the company.

        11

        M/s Transcend Infrastructure Ltd.

        Increase in FDI beyond 49% in building towers, acquiring towers or securing management rights of towers for the purpose of leasing or licensing the shares use of these towers to communications and broadcasting.

                    The following two (2) proposals have been rejected:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s ICP Investments (Mauritius) Ltd., Mauritius

        Transfer of Shares from NR to NR (repatriation of original investment before a period of three years from completion of minimum capitalization.

        2

        M/s Meta Telecom Pvt. Ltd., New Delhi

        Increase in Foreign equity from 40% to 73.45% in a company engaged in ILD and NLD Services.

        *****

        BSC/SS/GN -189/08

         

        Foreign Direct Investment approvals announced, with multiple sectoral approvals, several deferrals and two rejections following regulatory review. The Finance Minister approved 24 FDI proposals across multiple sectors following FIPB recommendations, authorising subsidiary formations, equity acquisitions, joint ventures, downstream investments via conversions to operating cum holding companies, issuance of partly paid shares and convertible warrants, and ex post facto regularisations. Several approvals invoke Press Note 1 of 2005. Eleven proposals were deferred for further scrutiny, and two proposals were rejected, one for an early repatriation share transfer and one for raising foreign equity in telecommunication services. The notice differentiates approvals involving fresh equity inflows from those restructuring existing foreign participation.
                          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 announced, with multiple sectoral approvals, several deferrals and two rejections following regulatory review.

                                The Finance Minister approved 24 FDI proposals across multiple sectors following FIPB recommendations, authorising subsidiary formations, equity acquisitions, joint ventures, downstream investments via conversions to operating cum holding companies, issuance of partly paid shares and convertible warrants, and ex post facto regularisations. Several approvals invoke Press Note 1 of 2005. Eleven proposals were deferred for further scrutiny, and two proposals were rejected, one for an early repatriation share transfer and one for raising foreign equity in telecommunication services. The notice differentiates approvals involving fresh equity inflows from those restructuring existing foreign participation.





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