Timken gets nod for Tata stake

The company manufactures tapered roller bearings for trucks and railway coaches. The remaining equity is with the public.

Timken will be buying 13 lakh preference shares, the entire Tata holding. According to the proposal, TISCO has decided to divest its holding in Tata Timken, under a restructuring plan to consolidate its business activities.

The department of industrial policy and promotion had earlier sought the opinion of the Securities and Exchange Board of India on the application.

TheTimken application is accompanied by an October 30 board resolution, approving the intended sale of Tata shares to Timken.

The FIPB at its meeting also cleared a proposal of Asahi Float Glass Ltd to increase the Japan-based Asahi’s stake in its joint venture with Tata group companies. Asahi has been allowed to increase its stake in the joint venture from 49 per cent to 59 per cent through an issue of cumulative redeemable preference shares worth Rs 45 crore.

Asahi Float Glass is promoted jointly by Asahi and Tata group companies ACC, Telco and Tata International. The shares could be redeemed within 10 years or before. FIPB also cleared a proposal by Tamil Nadu Hospitals Ltd to issue redeemable cumulative preference shares of the tune of Rs 56 crore to fund the 450-bed hospital’s modernisation and expansion.

The entire redeemable preference shares would be picked up by Opus Healthcare of the United Kingdom. Non-resident Indians already hold 48.6 per cent stake in the super specialty hospital.

Amongother foreign investment proposals cleared were one by Business India Information Technology to start E-mail and internet services in the country.A special purpose vehicle (SPV) is being set up for the purpose which would hold 49 per cent in the company bringing in about Rs 20 crore FDI, sources said.

A similar proposal by Delta Enterprises to enter into internet services was deferred by the board. Delta had envisaged a FDI of Rs 5 crore from Century Direct Fund of Mauritius in the project.

According to the proposal, Century Direct Fund would hold 48 per cent stake in the internet service provider.

FIPB to reconsider rejected norms

NEW DELHI: The industry ministry has decided that an application once rejected by the Foreign Investment Promotion Board (FIPB) will be reconsidered by the Board only after the approval of the Secretariat for Industrial Assistance (SIA) in the same ministry.

Sources said that the decision may have been taken in order to hasten the process of clearances. The FIPBfeels that at times it is flooded by proposals which include certain amendments to the original application, which may be discussed and thereafter dealt by the SIA.

Sources said that the FIPB took the decision in the wake of an application filed by Klinken Berg India Ltd which had sought certain relaxations. The company had submitted a proposal under which it would be sourcing cashew kernels, spices, tea, coffee, coconut and groundnut kernels from India and selling it in the overseas markets. The foreign equity in the company is to the extent of 33.4 per cent. It had sought two relaxations from the government, the company be allowed to import since they were intermediates between the buyers and sellers. It also also requested the ministry to remove the export obligation clause.