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Journalism of Courage
NEW DELHI, JAN 16: The Foreign Investment Promotion Board (FIPB) on Saturday okayed foreign direct investment proposals worth Rs 902 crore, including a 130-million dollar convertible euro bond issue by Essar Steel.
The foreign currency convertible bond of about Rs 550 crore would go towards funding equity component of the Rs 1,840-crore Essar pellet project in Vishakhapatnam, industry ministry sources said. After the conversion of bonds, the foreign equity in the project will increase to 54 per cent, while the domestic component will go down from 76 per cent to 34 per cent. The proposal envisages manufacture of pellets using iron-ore fines from Bailadila mines.
The board also cleared a proposal by Fidis Spa of Italy to set up a joint venture in the country for financial services and auto financing, basically meant for Fiat range of vehicles.
Fidis will invest about Rs 147 crore to pick up 51 per cent stake in the joint venture. The remaining 49 per cent will be held by Sundaram Fastners.Among otherproposals cleared by the board are BPL Cellular, Marubeni corporation, YKK and ABB Asia.
BPL Cellular has been allowed to expand paid up capital in its joint venture with France Telecom through a rights issue. The sources said France Telecom will inject Rs 7.67 crore to subscribe to the issue and the stake of both the partners will remain the same.
Marubeni india, a wholly-owned subsidiary of Marubeni Corporation, Japan, has got the okay to increase its capitalisation to 15 million dollars from the existing five million dollars. Marubeni india is engaged in trading activities. Similarly, YKK, an integrated zip manufacturer, has also been allowed to increase its equity capital from 25 million dollars to 30 million dollars. FIPB also allowed ABB Asia’s proposal to increase its stake in its joint venture with Intron India to 60 per cent from existing 30 per cent.
ABB Asia will bring in Rs 10.8 lakh to increase its stake in the joint venture company, which manufactures actuator pumps. The board alsocleared a proposal by Nissin Corporation of Japan to set up a joint venture with ABC India ltd for international freight forwarding. Nissin would bring in Rs 1.02 crore as its stake in the joint venture. a proposal by Suessen Asia, which manufactures components for textile spinning machinery, to issue non-convertible redeemable shares worth Rs 11 crore has also been cleared by FIPB. Another proposal cleared was that of Trans Continental Tobacco India to sell 25 per cent of its produce in the domestic market. The board has cleared a total of 43 FDI proposals on Saturday, including 12 from software, eight from manufacturing and four from consultancy and financial services.
