Kolkata company designated for ensuring downstream investments

New Delhi, Feb 22 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today approved a proposal for designating New Kolkata International Development Private Limited (NKID) as an operating-cum-holding company to make downstream investments in Indian companies developing integrated infrastructure development projects, including SEZs, townships, housing and industrial parks.

These investments are to be made either through 100 per cent owned SPVs or joint ventures with third parties, including West Bengal Industrial Development Corporation (WBIDC).

The approval will result in getting the FDI amounting to US0 million (Rs.2250 crore approximately) in the country.

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

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

NKID, a company incorporated in West Bengal, has entered into Development Agreement with the state government as well as WBIDC to act as 'Developer' for the proposed 'New Kolkata Project'.

Forty per cent of NKID's equity will be subscribed by Indonesia's Salim Group which is one of Asia's leading business groups, and has already made investment in India in a project for developing an integrated township in Kolkata in a joint venture.

Another Indonesia-based company -- Supatra Group -- will also make investments in infrastructure projects.

UNI