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| Government Approved 12 FDI Proposals |
The Indian Government said that it has finally approved 12 FDI proposals worth over Rs 2.6k
Crore (approximately Rs 2,609 crore). These twelve FDI proposals eventually
include the proposal of Pharma firm Claris Otsuka.
Decathlon Sports India's proposal for introduction of foreign funds worth
Rs 700 crore to participate in single brand retail has also been approved by
the Foreign Investment Promotion Board
(FIPB), which is eventually headed by the honorable Economic Affairs Secretary Mr.
Arvind Mayaram himself.
The Finance Ministry of India
has issued a press statement acknowledging this economic news. In that
statement the ministry said, “Based on the recommendations of FIPB in its
meeting held on February 13, Government has approved 12 proposals of foreign
direct investment amounting to Rs 2,609.27 crore approximately.”
The plan of Claris Otsuka Ltd, which is an Ahmadabad-based Pharma
Company, to assemble its Infusions business into a brand new Joint Venture (JV)
with Foreign Direct Investment worth Rs 1,050 crore, was the biggest cleared
proposal.
FIPB also cleared the proposal of Mumbai-based Glynwed Pipe Systems. It
had applied with a proposal to the board, as it wanted to receive foreign
investment of around Rs 800 crore for building downstream investment in order
to boost its overall profit scenario.
Another proposal of Pramod S.A.S, France, to be eligible to receive
foreign funds of Rs 29.69 crore into an Indian Company via a Joint Venture
mode, was also approved by the board members. This will allow the company to
engage in the single brand retail trading in India.
Le Creuset Trading and Fossil India are the companies which had shown a
lot of interests to enter in the Indian retail market by opening single brand
retail stores in India. The board finally approved the FDI proposals of these
two companies, so now these two can set up retails stores as a wholly-owned
subsidiary of a foreign company with no difficulties.
The board has also cleared a few more proposals, which it had received
by the several of leading companies. Some of those proposals came from companies
like Netherlands-based Aon Holdings, Menarini Raunaq Pharma and Al Shukur
Company for Engineering.
It has to be mentioned here that the board did not approve all the
proposals. As a matter of fact it eventually rejected one proposal and deferred
nine of them. The proposal of Alliance Insurance Brokers to receive foreign
money to expand the business of Insurance broking was deferred by the Foreign
Investment Promotion Board (FIPB).
The only proposal that was rejected by the board is the proposal of Erica
Healthcare, which is a Mumbai-based company. It submitted a proposal in front
of the board to increase foreign investment, but the board did not approve it.
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