TMI Blog13 FDI PROPOSALS CLEAREDX X X X Extracts X X X X X X X X Extracts X X X X ..... 13 FDI PROPOSALS CLEARED - News and Press Release Dated:- 5-10-2007 - News - Finance Minister, Shri P. Chidambaram has approved 13 Foreign Direct Investment proposals recommended by Foreign Investment Promotion Board (FIPB) in its meeting held on 20 th September, 2007. The approval amounts to Rs. 393.36 crore. The proposals are related to Ministries/Departments, namely, Commerce, Heavy Industry, Industrial Policy Promotion, Information Technology, Information Broadcasting, Telecommunications Urban Development and Economic Affairs. The major investment proposals pertain to the Ministries/Departments of Commerce, Heavy Industry Telecommunications. The details of the proposals approved are as follows: Sl. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. In crore) COMMERCE 1 M/s. NCH Corporation, USA Induction of foreign equity of up to 100% in a company engaged in the business of manufacturing, importing, exporting, marketing, selling of specialty maintenance chemicals, and lubricant products in India and abroad under the brand 'certified laboratories'. Proposal attracts Press Note 1 (2005 series). 1.00 2 M/s. South Asia Breweries Pvt. Ltd. Delhi Conversion of a 100% foreign owned operating company in the field of manufacture and sale of alcoholic and non-alchoholic products into operating cum holding company and for downstream investment by fresh subsc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ription and acquisition of existing shares upto 60% in Parag Breweries Limited and Agnes Impex Private Limited 2.71 3 M/s. Maruti Udyog Limited, New Delhi To set up a new JV with Futaba Industrial Co. Ltd., Japan, with foreign equity of upto 51% to be engaged in the manufacture and sale of Exhaust System Components for automobiles, limited to exhaust pipes and mufflers for YN 4 and YY 4. Proposal attracts Press Note 1 (2005 series) 45.90 HEAVY INDUSTRY 4 M/s. KVK Energy and Infrastructure Private Limited, Hyderabad Induction of foreign equity upto 70% in the Indian company to make investments in downstream operating companies engaged in implementation of power sector projects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97.06 INDUSTRIAL POLICY PROMOTION 5 M/s. Metal One Corporation, Japan Induction of foreign equity of up to 5% in a joint venture company with Tata Metalliks (51%) and Kubota Corp., Japan (44%) engaged in the manufacture and sale of ductile iron pipes, fittings and accessories. Proposal attracts press Note 1(2005 series) 3.75 INFORMATION TECHNOLOGY 6 M/s. Citigroup Global Services Ltd, Mumbai Conversion of foreign owned operating company into operating cum holding company to make further downstream investment by incorporating a new wholly owned subsidiary, in the field of providing ITES to banking and financial services industry No fresh inflow INFORMATION ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BROADCASTING 7 M/s. MGM Programming Service India Pvt. Ltd. Mumbai Induction of foreign equity upto 100% in a company proposing to undertake activities relating downlinking non-news and current affairs television channel to subscribers in India. 1.5 8 M/s. Nagarjuna Oil Corporation Ltd, Chennai Issue of equity shares against payables for supply of second hand equipments to Uhde Gmbh Germany No fresh inflow ECONOMIC AFFAIRS 9 M/s. DIC Asia Pacific Pte. Ltd. Singapore Acquisition and induction of foreign equity upto 100% in a company proposed to be engaged in manufacture of printing ink. Proposal attracts Press Note 1 (2005 series) 0.01 INFORMATIO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N BROADCASTING 10 M/s. Bloomberg L.P. USA To undertake additional activities of down-linking activities and also increase in paid up capital 0.85 URBAN DEVELOPMENT 11 M/s. A Rank Holdings Pvt. Ltd. Conversion of operating company into 100% operating-cum-holding company, and also to make downstream investment, by way of acquisition of existing shares, in two companies engaged in auto component sector. 8.00 TELECOMMUNICATIONS 12 M/s. Aster Infrastructure Pvt. Ltd. Secunderabad Induction of foreign equity upto 72.5% in a company engaged in the activity of telecom infrastructure provider, Category -I 232.58 13 M/s. Axis Risk Consu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lting Services Pvt. Ltd. Transfer of shares partly by way of cash and party by way of sware swap. No fresh inflow Total Rs. 393.36 crore The proposal of M/s. ICD Ltd, Hong Kong has been deferred. The proposal of M/s. Ford Automotive Finance Company India Pvt. Ltd. has been rejected. In the following 3 (three) proposals, the applicants have been advised to approach RBI, since the requests are for post facto approval and regularization of past violations of FDI policy by the applicants: Sl. No Name of the applicant Particulars of the proposal 1 M/s. Devas Multimedia Pvt. Ltd. Post-facto approval for conversion of operating company into operating-cum-holding company for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making downstream investments. 2 M/s. Manipal Universal Learning Private Limited, Bangalore Post facto approval of conversion of operating company engaged in imparting education into a holding company for making downstream investment 3 M/s. IBSS Techno Park Ltd. (now known as M/s. Taksheel Solutions Ltd.) Post-facto approval for allotment of shares in lieu of acquisition of business The following 3 (three) proposals have been recommended to be remitted to the Project Approval Board (PAB) for consideration: Sl. No Name of the applicant Particulars of the proposal Reasons for remitting to PAB 1 M/s. Premier Travel Inn India Ltd, UK Payment of franchisee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fee equal to 2% and marketing fee of 1% of the gross revenue to the franchisor, in the hotel sector Proposal is only for payment of franchisee fee above the limit of automatic permission, and does not involve approval for foreign investment. The foreign equity in this sector is on automatic route without any sectoral cap. 2 M/s. Denso Kirloskar Industries Pvt. Ltd. Payment of Application Works Cost fee of up to US $ 5.00 million for up gradation of technology, in manufacturing of radiators, air conditioners etc. The company has existing approval and the current proposal is only for payment of lump sum fee for technological collaboration above the limit of automatic permission. The current amendment request does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not involve approval for foreign investment 3 M/s. MTV India Pvt. Ltd. payment of royalty for use of trademarks/brands and fees for technical assistance and other consultancy services, in the broadcasting sector Proposal is only for payment of royalty for technical assistance and brand royalty above the limit of automatic permission. The current amendment proposal does not involve approval for foreign investment In the following proposal, the Board after consideration found the activity/ transaction to be falling under automatic route and has recommended the applicant to be advised accordingly: Sl. No Name of the applicant Particulars of the proposal Reasons for recommendation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 M/s. Rural Electrification Corporation Ltd, New Delhi Disinvestment of 10% of the shareholding of REC by way of transfer and also to make public issue of fresh equity capital of 10%, by way of offer for sale, including to SEBI registered FIIs, FVCIs and NRIs. The Board recommended that the activity of REC is to be treated as 'Leasing and Finance' and hence RBI and REC be advised that it does not require - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... 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