Based on the recommendation of the Foreign Investment Promotion Board,the government today cleared 23 new FDI proposals set to bring in Rs 564.80 crore worth of foreign direct investment into India. Some of the key proposals that got the FIPBs approval included Dubai-based Damas plan for retail trading in jewellery and Fren food products company Danones plans to re-enter the food products space in India after quitting Britannia earlier this year. Damas proposal to set up a joint venture with Gitanjali Lifestyles for retail trading of jewellery in India will bring in FDI of Rs 180 crore. In Danones case,on the other hand,theres no specific FDI content in its plan for food products business as a separate company for this purpose is yet to be incorporated. The government,however,on the basis of recommendation by the Foreign Investment Promotion Board,also deferred 13 proposals including especially Vijay Mallya-owned United Breweries plans for raising Rs 708 crore by issuing fully convertible equity warrants. The contention here was that under the new FDI guidelines issued earlier this year,Kingfisher Airlines has exceeded the FDI ceiling of 49 per cent in air carriers.
