Centre okays Salim Group's Rs 2,250 cr FDI for West Bengal

New Delhi, Feb 22 (UNI) The Centre today cleared a Rs 2,250 crore (500 million dollar) foreign direct investment (FDI) proposal from the Indonesian-based Salim Group and Ciputra Groups for developing infrastructure projects including special economic zones (SEZs), townships and housing in West Bengal.

The Cabinet Committee on Economic Affairs, at its meeting here, gave its approval to the New Kolkata International Development Pvt Ltd (NKID), set up by the two Indonesian groups, ''to make downstream investments in Indian companies developing various components of the integrated infrastructure development project comprising townships, housing, SEZs, Industrial parks and related infrastructure''.

Giving details of the project, Finance Minister P Chidambaram told newspersons that the approval would be subject to two conditions.

First, the downstream investment will be as per the guidelines contained in Press Note 9 of 1999. Secondly, the construction development activity will comply with the conditions of Press Note 2 of 2005 and Press Note 2 of 2006 as applicable.

The NKID, an operating-cum-holding company, will set up infrastructure projects either through 100 per cent owned special project vehicles or joint ventures with third parties including the West Bengal Industrial Development Corporation (WBIDC).

The high-profile Salim group last year announced investments exceeding Rs 2,000 crore in the state, including in the project to develop an integrated township near Kolkata in a joint venture with non-resident Indian, Prasoon Mukherjee, promoter of the Universal Success Enterprise (USE group).

NKID has obtained the necessary no-objection certificate from Kolkata West International City Pvt Ltd and its Indian partner Dhanalakshmi Abasan Pvt Ltd.

NKID has entered into Development Agreement with the state government and West Bengal Industrial Development Corporation Ltd to act as developer for the proposed ''New Kolkata Project''.

The Salim Group, one of Asia's leading business groups, will hold 40 per cent of NKID's equity. It has already invested in a project for developing an integrated township in Kolkata in a joint venture.

UNI