News: Indian Govt clears 26 FDI proposals worth Rs 992.84 cr

(PTI 19/09/2006) New Delhi - As many as 26 Foreign Direct Investment proposals have been cleared by the Government, which would bring Rs 992.84 crore, including Rs 342 crore by Japan-based Mitsubishi Chemicals Corporation, into the country.

The proposals, approved by Finance Minister P Chidambaram on the recommendations of the Foreign Investment Promotion Board, also included three plans by British Gas Energy Holding Ltd aggregating to Rs 405 crore to supply natural gas for domestic and commercial usage in three states of the country.

For this purpose, the company plans to set up three wholly owned subsidiaries in Andhra Pradesh, Karnataka and Tamil Nadu at an investment of Rs 135 crore each.

Mitsubishi Chemicals Corporation along with the six other companies of Japan is infusing additional capital in MCC PTA India Corp Pvt Ltd for manufacturing and marketing of purified Terephthalic Acid.

A proposal from Hutchison Telecom (India) Ltd for indirect foreign equity participation in six of its operating companies in India was also okayed. However, the proposal does not include any additional FDI inflow.

The six companies are Hutchison Essar Cellular Ltd, Hutchison Essar Mobile Services Ltd, Hutchison Essar South Ltd, Hutchison Essar Telecom East Ltd, Aircel Digilink India Ltd and Fascel Ltd.

Another big ticket approval cleared was that of JSC Technochim of Russia for manufacturing of Titanium Products. The company will bring in Rs 192.5 crore into India to set up a JV with 55 per cent equity participation.

Among other proposals cleared include Acer Computer International's plan to undertake wholesale trading on cash and carry basis of Acer branded personal computers and note book and UK-based Cairn UK Holdings Ltd proposal in exploration and production of petroleum product under the automatic route.

For manufacturing and marketing of highly engineered bearing product, the government approved Timkin Company's proposal to set up a wholly owned subsidiary in Chennai.

The US-based entity plans to invest Rs 49.50 crore in the country to set up manufacturing and distribution base in the country.

Besides, the government also approved Spheros GmbH's plan to set up a joint venture company to be engaged in the manufacturing of hatches, heaters, air-conditioners for buses.

The company plans to bring in an investment of Rs 1.02 crore into the country.