FIPB clears Ispat, Benz plans

The project involves a FDI of Rs 675 crore which will be brought in by the group’s overseas affiliates and associates, constituting 49 per cent of the equity. Mittals would hold the remaining 51 per cent stake in the project, which will also enter into manufacture of telecom equipment.

The approval is subject to other clearances like licenses from ministries and the Cabinet Committee on Foreign Investment. FIPB also cleared a proposal by AES Power Corporation to bring in Rs 510 crore to pick up 49 per cent stake in Orissa Power Generation Corporation (OPGC). AES Power would invest in OPGC through its wholly-ownedsubsidiary AES India. The application is supported by a board resolution from OPGC, allowing AES Power to acquire a stake in the company.

Another significant proposal cleared is that of Mercedes Benz to increase its stake in its Indian joint venture with the Tatas. The board cleared the proposal by the German manufacturer to increase its stake in Mercedes Benz India Ltd (MBIL) to 86 per cent from the existing 81.32 per cent by bringing in an additional equity of Rs 150 crore. The remaining stake in MBIL is held by the Tatas. This is the second time, Mercedes is upping its stake in the Indian joint venture. It had earlier subscribed to the company’s rights issue. The board also cleared proposals by two Italian companies to set up automobile component manufacturing facility for Fiat cars in India. Proposals by two wholly-owned Italian companies Officine Metallurgiche for manufacture of fuel tanks and other auto components and Arden was also cleared.

Officine, which will have its manufacturing facility inPune, would bring in foreign investment of Rs 16.8 crore, while Arden with facilities at Goa and Pune will bring in Rs 8.2 crore. The FIPB, however, rejected a proposal by Daewoo Corporation’s arm to import and market car stereos in India. The proposal was rejected as it involved only trading and no manufacturing was proposed by Rico Daewoo Precision Industries.

The proposal was rejected at the behest of the commerce ministry which stated that no equity investment was being made in the country and there was no technology inflow. Two proposals by Maharishi Education Corporation and Internet Promoters Ltd to provide internet services in the country were also cleared.

Internet Promoters, which has Interpacket of USA as its foreign partner, will bring in Rs 62 crore as foreign investment for setting up internet services, the sources said. Maharishi Education Corporation, which will have a 49 per cent foreign equity, will bring in Rs 10 lakh. The board also cleared two proposals by Emtech Holding andProfessional Assessment and Training to start software related business in the country.