Rs 2,339cr FDI plans get nod

NEW DELHI: The government has approved Morgan Stanley’s proposal to invest Rs 1,894 crore. The company plans to invest up to $465 million in a mix of equity and compulsorily convertible preference shares. Nine other proposals were also approved by the finance minister on Wednesday. The total approved investment amount was Rs 2,339 crore.

According to the Morgan Stanley proposal, the proposed investments in equity and compulsorily convertible preference shares will be issued by Morgan Stanley India Securities and Morgan Stanley Investment Management.

The firm has also proposed that it should be permitted to carry on through its subsidiaries, securities sales, trading & broking, merchant banking and corporate advisory services and other NBFC activities.

A proposal worth Rs 407 crore by Rakindo Developers, Chennai, was also cleared. The company seeks to set up a joint venture to act as a holding company to make downstream investment in construction development projects.

Japan-based Furukawa Electric Co’s Rs 19-crore proposal to set up a joint-venture company with foreign equity up to 51% for undertaking the activities of designing, developing, manufacturing, testing, assembling, marketing, selling, distributing and servicing of wire harnesses for two-wheelers and automobiles for the joint-venture company’s customers was also given clearance.

DaimlerChrysler India’s proposal for extension of present activity/product/ business line to cover local manufacturing of commercial vehicles including chassis of trucks and buses as well as bus body building was given the nod by the finance ministry. The proposal attracts provisions of Press Note 1 (2005 series).