13 FDI proposals worth Rs 212 cr cleared

The government has cleared 12 foreign direct investment (FDI) proposals that will bring in Rs 212 crore (Rs 2.12 billion), of which the largest chunk will be by US-based Millennium India Acquisition Company.

Meanwhile, 13 proposals, including two from B A G Films, were deferred by the government, according to an official statement. The US-based company will bring in Rs 159.92 crore (Rs 1.59 billion) of FDI to acquire stakes in two non-banking finance companies.

Subsidiaries of these NBFCs are engaged in security market as stock broker, distribution of mutual fund units and commodity trading.

Among the proposals cleared by Finance Minister P Chidambaram on the recommendations of the Foreign Investment Promotion Board are two from media house India Today Group to bring in foreign direct investment in its upcoming publications -- a newspaper and a magazine.

UK-based Associated Newspapers Ltd will bring in Rs 18.02 crore (Rs 180.2 million) as FDI for launching a newspaper Mail Today along with Living Media Ltd, the holding company of India Today Group.

For this purpose, a joint venture would be set up in the name of Mail Today Newspaper Pvt Ltd. Living Media would hold 74 per cent and remaining 26 per cent will be owned by the UK-based media house, official sources told PTI.

Associated Newspapers Ltd has reputed publications like The Daily Mail and London Metro. Another joint venture – Itas Media Private Ltd will be set up by Living Media and Axel Springer of Germany to bring out a magazine 'Auto Bild India'.

While Axel Springer will bring in Rs 2.66 crore (Rs 26.6 million) to hold 49 per cent in the JV, Living Media will own 51 per cent. The German media company has 150 newspapers and magazine across 27 countries in the world.