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        News and Press Release

        12 Foreign Direct Investment proposals approved

        September 17, 2008

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        Finance Minister, Shri P. Chidambaram has approved 12 Foreign Direct Investment proposals recommended by Foreign Investment Promotion Board (FIPB) in its meeting held on 12th September, 2008. The approval amounts to Rs. 1414.65 crore.  The proposals are related to Ministries/Departments, namely Commerce, Economic Affairs, Heavy Industry, Information & Broadcasting, Information Technology and Telecommunications.

                    The details of the proposals approved are as follows:

        Sl. No.

        Name of the applicant

        Particulars of the proposal

        FDI/NRI inflows (Rs. In crore)

        COMMERCE

        1.

        M/s. Picanol India Pvt. Ltd. New Delhi

        Capitalization of pre-incorporation/preliminary expenses

        No fresh inflow

        ECONOMIC AFFAIRS

        2.

        M/s. Automatika Ltd,  Canada

        Transfer of shares by way of share swap

        No fresh inflow

        3.

        M/s. Polycab Wires Pvt. Ltd. Mumbai

        Conversion from operating company to operating cum holding company to make downstream investment and issue of warrants

        551.50

        4

        M/s. Goldman Sachs (Mauritius) LLC, Mauritius

        To undertake the activities which are permitted to be undertaken by a Primary Dealer in India.  Proposal attracts Press Note 1 of 2005

        34.19

        5

        M/s. Sybase Software (India) Pvt. Ltd.

        Conversion from operating company to operating cum holding company to make downstream investment

        No fresh inflow

        6

        M/s. National Housing Bank New Delhi (2) M/s. United Guaranty Corporation, USA (3) International Finance Corporation, USA

        To establish a joint venture company to undertake mortgage guarantee activities

        570.00

        HEAVY INDUSTRY

        7

        M/s. ZF India Pvt. Ltd.

        To manufacture and supply of chassis and driveline products for passenger vehicles, rail vehicles and manufacture and supply of  transmission for marine craft applications.  Proposal attracts Press Note 1 of 2005

        224.75

        INFORMATION & BROADCASTING

        8

        M/s. Nine Dot Nine Mediaworx Pvt. Ltd. New Delhi

        Induction of FDI in a company engaged in publishing of scientific magazines/speciality journals/periodicals etc.

        33.97

        INFORMATION TECHNOLOGY

        9

        M/s. SK C & C Co. Ltd. Korea

        To acquire equity shares by way of assignment of its existing "music tagging services" agreement

        No fresh inflow

        10.

        M/s. b-IQ Technologies Ltd.

        Conversion from operating company to operating cum holding company to make downstream investment

        No fresh inflow

         

        INFORMATION & BROADCASTING

        11

        M/s. Mediacom Worldwide Incorporated, USA

        Setting up of  a JV

        0.24

        TELECOMMUNICATIONS

        12

        M/s. Transcend Infrastructure Limited

        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 for communications and broadcasting

        No fresh inflow

                                                        Total                                                                    Rs. 1414.65 crore

                    The following nine  (9 ) proposals have been recommended to be deferred:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s. Quest Manufacturing Pvt. Ltd. Bangalore

        Conversion from operating company to operating cum holding company to make downstream investment

        2

        M/s. Meka Infrastructure Pvt. Ltd. Mumbai

        Conversion from operating company to operating cum holding company  to make downstream investment

        3

        M/s. Essel Shyam Communication Ltd. Noida

        To acquire equity shares and issue of warrants to subscribe to compulsory convertible preference share

        4

        M/s. Drillmec S.R.L. Spain

        The applicant has branch office in India since 2001 and the activities of the Branch Office and proposed wholly owned subsidiary/new company are the same, which cannot operate together

        5

        M/s. Benq India Pvt. Ltd.

        Company has been granted approval to undertake cash and carry wholesale trading for various types of telecom and IT products, fall under the automatic route (PN 4 (2006)], presently the company has requested to include the items (viz., monitors & CD Rom Drivers) for which approval was granted for manufacturing/test marketing

           6

        M/s.G4S Corporate Services India Pvt. Ltd. Gurgaon

        Conversion of existing status of operating company into foreign owned Indian Holding Company to make downstream investment

        7

        M/s. Delight Investments Pte. Ltd. Singapore

        Induction of foreign equity in two Indian companies and to convert their status from operating company into operating-cum-holding company for making further downstream investments

        8

        M/s. Geld Consultancy Services Pvt. Ltd. Mumbai

        To set up JV to carry out the activities of Global Positioning System Hardware & Software and services and related equipment field

        9

        M/s. ABN-AMRO Securities (India) Pvt. Ltd.

        To enlarge the services by offering value added financial services (non fund based) to their clients (both individual and institutional)

                    The following  one  (1 )  proposal has been rejected:

        Sl. No

        Name of the applicant

        Particulars of the proposal

        1

        M/s. JSW Infrastructure Ltd, Mumbai

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

        BSC/SS/GN-228/08

        Foreign direct investment approvals across sectors, with multiple proposals deferred and one proposal rejected following review. Twelve foreign direct investment proposals recommended by the Foreign Investment Promotion Board were approved across multiple ministries for actions including capitalization of pre incorporation expenses, share transfers, conversion of operating companies into operating cum holding companies for downstream investment, induction of foreign equity, and establishment of joint ventures; several approvals are subject to sectoral conditions in policy notes. Nine proposals were recommended for deferral due to route, activity overlap or structural concerns, and one application for ex post approval of holding company activity was rejected.
                          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 sectors, with multiple proposals deferred and one proposal rejected following review.

                                Twelve foreign direct investment proposals recommended by the Foreign Investment Promotion Board were approved across multiple ministries for actions including capitalization of pre incorporation expenses, share transfers, conversion of operating companies into operating cum holding companies for downstream investment, induction of foreign equity, and establishment of joint ventures; several approvals are subject to sectoral conditions in policy notes. Nine proposals were recommended for deferral due to route, activity overlap or structural concerns, and one application for ex post approval of holding company activity was rejected.





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