Indonesian cos get nod to invest $500m in West Bengal

NEW DELHI: The proposal of Indonesia-based Salim and Ciputra Group’s $500 million (Rs 2,250 crore) investment in West Bengal has received the go-ahead from the Cabinet Committee on Economic Affairs (CCEA). The approval given to the West Bengal government’s New Kolkata International Development Pvt Ltd (NKID) — of which the Salim group holds 40% equity — comes despite the ongoing controversy over the acquisition of land by the Salim group in West Bengal for its special economic zone.

“CCEA has approved the broad proposal since it involved FDI inflow exceeding Rs 600 crore. The exact nature of investment would depend on the agreement between the investors and the state government,” Finance Minister P Chidambaram said.

The CCEA approved the NKID to act as the operating-cum-holding company. It would make downstream investments in Indian companies developing various components of the integrated infrastructure development project comprising townships, housing, SEZs, industrial parks and related infrastructure through 100% owned special purpose vehicles or joint ventures with third parties including West Bengal Industrial Development Corporation.

Salim group will hold 40% of NKID equity. The rest would be held by the Ciputra group and non-resident Indian Prasoon Mukherjee.