The Centre, on Thursday, approved as many as 14 Foreign Direct Investment (FDI) proposals including one on wholesale trading of ores and metals—first of its kind in the sensitive mining and minerals sector.

All these 14 investment proposals envisaging inflow of FDI fund worth over Rs 1,257 crore have been approved by Finance Minister P Chidambaram on the recommendations made by Foreign Investment Promotion Board (FIPB) at its meeting held here last week.

Based on the FIPB note, the government cleared the proposal of Austria-based Bohler International GmbH to bring in FDI worth Rs 11 crore to set up a whole sale subsidiary to undertake wholesale cash and carry trading of ores and metals. This is the first instance of government allowing FDI in the wholesale trading of ores and metals, sources said. The Austrian firm will also be permitted in whole sale cash and carry of special steels.

Sensitive sector

In another significant decision, which may have far reaching  implications in the sensitive micro and small enterprises, Mr Chidambaram cleared the proposal of Mumbai-based Eldiar India Private Limited to induct FDI to the tune of Rs 58.20 crore through the foreign equity route for investment in activities related to manufacture of items reserved for small scale sector.

The Mumbai-based firm proposes to induct 97 per cent of foreign equity by two Mauritius based firms. The other significant FDI proposal cleared by Mr Chidambaram relates to US-based investment company Goldman Sachs Asset Management to bring in FDI worth Rs 200 crore for acquiring equity in an asset management company engaged in NBFC activities including but not limited to investment advisory services, asset management services and portfolio management services.

The government also cleared the proposal of Essar Telecommunication Holdings Limited to bring in FDI worth Rs 500 crore to fully acquire a company engaged in the activities of infrastructure provider for  Iinternet protocol. Mr Chidambaram also cleared the other major FDI proposal relating to that of Greenko Mauritius to bring in FDI worth Rs 480 crore to convert its operating company Balaji Biomass Power Limited into operating-cum-holding company to make downstream investments in power projects.

However, the FIPB deferred six FDI proposals. These include proposal of South Asia Multi-Media Technologies Limited for induction of foreign equity in a company engaged in FM Broadcasting services. FIPB also deferred the proposal of Avens Properties Private Limited  for induction of FDI in an investing company to make investments in SEZs and Industrial Parks.