FDI plans worth Rs 802.90 cr okayed

NEW DELHI, MAR 16: The Rs 435 crore global depository securities (GDS) issue of software major SSI Ltd and Nestle SA's proposal to hike st...

NEW DELHI, MAR 16: The Rs 435 crore global depository securities (GDS) issue of software major SSI Ltd and Nestle SA’s proposal to hike stake in Indian subsidiary by five per cent were among 46 Foreign Direct Investment (FDI) proposals worth Rs 802.90 crore cleared by Government today.

SSI Ltd has been allowed to float a GDS issue of Rs 435 crore for developing software products and E-commerce, while Swiss confectionary major Nestle SA has been permitted to raise its equity in Nestle India Ltd from 51 per cent to 56 per cent by bringing in a minimum of Rs 19.28 crore.

The FDI proposals covering diverse sectors like processed foods, non-banking finance activities, power cables, software and healthcare were approved by Commerce and Industry Minister Murasoli Maran on the recommendations of the Foreign Investment Promotion Board (FIPB), an official release said.

Story continues below this ad

The US lubricant major, Caltex Inc has been allowed to increase its paid-up capital by issue of fresh shares in the Indian venture by bringing in Rs 180 crore. The fresh infusion of funds is for setting up of various infrastructure projects for imports, storage and distribution of LPG.

Maran also approved the proposal of Universal ABB Power Cables for issue of 13 per cent cumulative redeemable preference shares (CRPS) worth Rs 30 crore for expanding its activities into insulated power cables with accessories.

The US-based Dana Corporation has been permitted to set up a 100 per cent subsidiary at an investment of Rs 30 crore for design, manufacture, contract for buying and selling, export and import of highway components.

Chaitime Inc of US has received Government nod for setting up a wholly-owned subsidiary for creating and designing of web-sites for Indian ethnic population worldwide at an investment of Rs 22 crore.

Story continues below this ad

Citicorp Finance (India) Ltd has been permitted to acquire 74 per cent equity in an unnamed downstream venture by bringing in Rs 14 crore, while ABB Holdings (South Asia) Ltd’s proposal to act as a holding company for ABB Switzerland’s investments in India was given the go-ahead.

Asia Online Ltd, Hong Kong has received Government permission to set up a 100 per cent subsidiary at an investment of Rs 21.5 crore to develop, promote, engage and undertake business of providing various information technology-related services.

Government also approved a proposal of Schenectady India Ltd, engaged in manufacturing of wire enamels and insulation varnishes and phenolic resins to increase its stake from 85 per cent to Rs 97.59 crore through conversion of CRPS into equity.