22 FDI proposals cleared; to bring in over Rs 541 cr

The government today cleared the road for 22 foreign investment proposals,including those by Nokia and Yamaha,expected to bring in Rs 541.25 crore worth of foreign direct investment (FDI) into India. Some of the more important proposals,cleared on the recommendation of the Foreign Investment Promotion Board (FIPB),include Nokia’s plan to set up the first single-brand retail joint venture with HCL Infosystems to sell handsets and accessories that will bring in Rs 25 lakh in the country.

Yamaha’s proposal to transfer its business operations to a new company in India,India Yamaha Motor Pvt Ltd,was also given the go-ahead by the government though it doesn’t entail any fresh inflow of funds. The proposal involving the highest amount of FDI inflow was that of broadband company Tikona Digital Networks involving an investment of Rs 237.26 crore.

However,proposals by six other firms were deferred by the FIPB,though no clear reason was cited in the government notification. These included those by Ortus Infratel and Holdings,Information Tech Park,Quippo Telecom Infrastructure,HP India Holdings,United Breweries (Holdings) and World Space Two proposals — Al Khaleej Sugar International and Indium IV (Mauritius) Holdings — were rejected by the board.