JOIN USThe Foreign Investment Promotion Board (FIPB) approved nine proposals (including two of Mahindra & Mahindra pertaining to defence and insurance ventures) for a total value of about Rs 1,140.14 crore, while 11 proposals were deferred according to a statement released on Friday.
The decisions were taken by the government based on FIPB recommendations at its meeting held on January 21, 2013.
The statement also said that Swedish company Ikea's Rs 10,500 crore to set up single-brand retail stores has been sent to Cabinet Committee on Economic Affairs (CCEA) for final approval, as the proposed investment is more than Rs 1,200 crore. The proposal was made by Ingka Holding Overseas B V, the parent company of Ikea.
M & M's insurance venture is a Rs 80.41 crore proposal to induct foreign equity to start insurance broking, while its defence proposal is “to develop, manufacture and provide service support for radar systems and various kinds of defence electronic systems and various kinds of defence electronic systems.”
The biggest in value, Rs 545 crore was by Multi Screen Media to bring in foreign equity to produce television programmes, while the second proposal was by Wire and Wireless to issue warrants for Rs 324 crore.
Of the 11 proposals deferred, one pertains to Norwegian telecom company Telenor Mobile Communications AS to set up a joint venture in the telecom sector.
Another deferred proposal is of Pipavav Defence and Offshore Engineering for “amendment in FC approval and issuance of shares to an identified foreign investor.”
The FIPB also deferred a proposal by Bangalore-based defence public sector undertaking Bharat Electronics Limited to set up a joint venture to design, develop and market defence radars for Indian and global markets.