Govt approves 9 FDI proposals totalling nearly Rs 295 cr

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New Delhi, Aug 14 (UNI) The government today approved nine FDI proposals totalling Rs 294.46 crore which inclued Singapore-based aluminium firm Rio Tinto's Rs 148.57 crore proposal to set up a plant and JP Morganis India Property Mauritius Company II worth Rs 99.99 crore.

The JP Morgan's plan relates to setting up hotels and investment in hospitality sector.

The proposals cleared are based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its meeting held on August 8, 2008.

Finance Minister P Chidambaram approved the proposals later, an official statement said here.

Cable service provider Hathway Cable Systems has got approval for investing Rs 43.06 crore to issue compulsorily convertible debentures (CCDs).

Surat-based Span Diagnostics has also got approval to form a joint venture through a nominal investment of Rs 66 lakh.

The FIPB, however, deferred six proposals, including of ABN-Amro Securities to enlarge services by offering value-added financial services to their institutional and other clients.

It also deferred the proposal of Aditya Birla Telecom to raise FDI limit to 74 per cent and issue and allot compulsorily convertible shares apart from acting as an operating-cum-holding company to make downstream investments.

The statement said two proposals were rejected which included Bangalore-based Forum Synergies India PE Fund to accept contributions from offshore entity under the FDI route and to issue units to offshore entity.

The proposal of Chandigarh-based EZY Infosoft to convert operating company into an operating-cum-holding company and transfer of shares by way of share swap was also rejected.

The proposals cleared relate to the Ministries and Departments of Commerce, Economic Affairs, Information and Broadcasting and Petroleum and Natual Gas.

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