Government clears 13 FDI proposals worth Rs 1,258 crore

NEW DELHI: Government today said it has cleared 13 FDI proposals totalling Rs 1,258 crore and referred Axis Bank's proposal for increasing foreign equity amounting to about Rs 6,266 crore for consideration of the Cabinet.

The Foreign Investment Promotion Board (FIPB), in its September 19 meeting, had also deferred decision on 8 FDI applications while two were rejected, it said. "Based on the recommendations of Foreign Investment Promotion Board (FIPB)...Government has approved 13 Proposals of foreign direct investment amounting to Rs 1258.53 crore approximately," the Finance Ministry said.

It further said the proposal of private sector lender Axis Bank, amounting to Rs 6,265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs as the investment involved in the application is above Rs 1,200 crore. The bank had sought FIPB's nod to increase the foreign equity from the existing 49 per cent to 62 per cent. Among major proposals which have been approved include that of Shantha Biotechnics (Rs 755 crore), Equitas Holdings (Rs 222.8 crore) and Stork Titanium (Rs 156 crore).

Shantha Biotechnics has been given permission to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment. Proposals on which decision was deferred include Jubilant Aeronatics, Soma Tollways, M D Shajahan Bablu, Bangladesh, and Green Destinations Holdings, Mauritius. The Ministry also said that decisions on five proposals have been kept in abeyance. During the April-August period of 2013-14 fiscal, FDI inflows into the country stood at USD 8.46 billion, up 4 per cent from USD 8.16 billion in the year ago period.