FIPB not to give more time to CCFSIPL for capital infusion

NEW DELHI: The Foreign Investment Promotion Board (FIPB), the nodal government body that clears foreign investment proposals into the country, has rejected a proposal from Cargill Capital & Financial Services India (CCFSIPL) to postpone mandatory capital infusion of $42 million by two years.

CCFSIPL is a 100% subsidiary of Holland-based Cargill Holdings BV and provides various non banking financial services in the country. It had invested $8 million since starting operations in India in September 2007 and was to bring in the balance $42 million within 24 months. But the parent company had sought an extension of deadline to September 2, 2011 for the pending investment citing global economic downturn.

The Department of Economic Affairs did not support the proposal on the ground that there���s no compelling case for extension of deadline for capitalisation of up to $50 million and any dilution can cause a deluge, following which FIPB also rejected the proposal.