FIPB clears CGF, Citibank proposals

NEW DELHI, MAR 20: The Foreign Investment Promotion Board (FIPB) on Saturday approved 50 proposals envisaging inflow of foreign funds to ...

NEW DELHI, MAR 20: The Foreign Investment Promotion Board (FIPB) on Saturday approved 50 proposals envisaging inflow of foreign funds to the extent of Rs 680 crore. The proposals cleared included those of CGF Investment which is a part of the Hutchinson group and Citibank move to increase the capital.The board approved CGF’s application for issuing non-convertible preference shares worth Rs 165 crore. CGF holds 49 per cent shares in Telecom Investment India Ltd.

FIPB further cleared the application Citi Corp Finance Ltd, a 100 per cent holding company of Citibank, to bring in $10 million for increasing its paid-up capital to $ 50 million.

The board approved nine proposals in the computer software sector. It included a proposal by Alcatel Development Centre to increase its paid-up capital by Rs 3.5 crore.

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FIPB also gave a go-ahead to GE Plastics to increase its equity in Advanced Engineering from 50 per cent to 60 per cent by way of issuing shares worth Rs 15 crore. IPCL owns 50 per cent in the companycurrently, which will now be reduced to 40 per cent.

UK-based Williams also received clearance from the board to bring in Rs 7 crore to increase its equity to 30 per cent from the existing 23 per cent in Steel Age Industry.

Compagnie Saint Gobain of France received the green signal to increase its equity in Grindwell Norton by five per cent to 95 per cent by bringing Rs 107.5 crore.

ELF Gas India Ltd, which is engaged in import, storage and distribution of liquified petroleum gas, was allowed to bring in Rs 6.37 crore of FDI to increase its shareholding to 100 per cent against 74 per cent at present in Rayseed India Co. However, ELF would have to divest 26 per cent equity in five years to the Indian company.

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FIPB cleared the proposal of Austria-based PFB Project Engineering which will bring in Rs 40 lakh to hold 13.33 per cent stake in Fungicide India Ltd, which manufactures juice concentrate.

Forex rises $76 mn

MUMBAI: Foreign currency assets were up by $ 76 million to $ 27,941 millionduring the week ended March 12. The total foreign exchange reserves were up to $ 30,920 million, according to RBI’s weekly statistical supplement. Central government availed of Rs. 2,015 crore from ways and means advances facility during the week ended March 5.