Ford, Lintas, Daewoo get FIPB clearance

The largest foreign investment proposal cleared today was that of Midal Cables, Bahrain, to invest Rs 63 crore for setting up a 100 per cent subsidiary to manufacture aluminium wire rods, conductors for transmission projects. Lintas India Ltd’s proposal was to increase the stake of parent company Lintas Inc, USA from 40 per cent to 49 per cent.

FIPB, however, rejected the proposal of Daimler Benz AG of Germany seeking waiver of dividend balancing in its joint venture with Telco to manufacture commercial and utility vehicles.

The proposal was rejectedbecause waiver of dividend balancing was not permitted within the policy guidelines, the sources said. The proposal by Ford Motor Company and Ford International to set up a wholly-owned computer software company in Chennai was approved, the sources said.

A foreign investment of Rs 10 crore was envisaged in the proposal. Ten proposals, including that of Ford, in the software sector got the nod today. Two proposals of NBFCs were cleared amounting to a foreign investment of Rs 30 crore, the sources said. Prime Broking Co India Ltd has been allowed to bring in about Rs 21 crore to start share, stock and debt broking in the country. Another proposal by South Asian Financial Exchange Ltd, envisaging an investment of Rs 12.5 crore, to do NBFC activities has also been cleared. The proposal of Daewoo Anchor seeking clearance for paying technical fee for Daewoo Electronics was deferred as the limit sought was more than prescribed norms. Cincinatti Milacron obtained the nod for enhancing the capital base ofMilacron Private Limited by Rs 10 crore.