Govt nods 12 FDI proposals worth over Rs 2,609 crore

The government said on Friday it has approved 12 FDI proposals, including that of pharma firm Claris Otsuka, totalling over Rs 2,609 crore (Rs 26.09 billion).

The Foreign Investment Promotion Board headed by Economic Affairs Secretary Arvind Mayaram, also cleared the proposal of Decathlon Sports India's proposal for induction of foreign equity worth Rs 700 crore (Rs 7 billion) to engage in single brand retail.

"Based on the recommendations of FIPB in its meeting held on February 13, Government has approved 12 proposals of foreign direct investment amounting to Rs 2,609.27 crore (Rs 26.09 billion) approximately," the Finance Ministry said in a statement.

The biggest proposal that was cleared was Ahmedabad-based Claris Otsuka Ltd's plan to hive off its Infusions business into a new JV with FDI worth Rs 1,050 crore (Rs 10.5 billion).

The board also cleared Mumbai-based Glynwed Pipe Systems's proposal to receive foreign investment worth Rs 800 crore (Rs 8 billion)

for making downstream investment.

The proposal of Pramod S.A.S, France, to induct foreign equity worth Rs 29.69 crore (Rs 296.9 million) into an Indian JV company to be engaged in single brand retail trading was also approved.

FIPB clearance was also accorded to Fossil India and Le Creuset Trading's for setting up of single brand retail stores as a wholly-owned subsidiary of a foreign company.

The other proposals cleared by the board include those of Menarini Raunaq Pharma, Al Shukur Company for Engineering & Construction and Netherlands-based Aon Holdings.

The board, however, deferred nine proposals and rejected one.

The proposals which were deferred include that of Alliance Insurance Brokers to induct foreign equity to carry out the business of insurance broking.

Mumbai-based Erica Healthcare's proposal to increase foreign equity was rejected by the FIPB.