FIPB clears 4 FDI proposals worth Rs 1,810 crore

NEW DELHI: The Foreign Investment Promotion Board (FIPB) today cleared four FDI proposals, including that of HDFC Standard Life Insurance, totalling about Rs 1,810 crore.
The other proposals which were cleared include that of Firefly Networks Ltd and Software is Correct, lnc, a Finance Ministry official said.

HDFC Standard Life had approached the FIPB for transfer of its shares currently held by HDFC to Standard Life (Mauritius Holdings) 2006 Ltd, thereby increasing foreign shareholding in insurance JV from 26 per cent to 35 per cent.

"The proposal of HDFC Standard Life would entail foreign investment of Rs 1,700 crore," the official added.

FireFly Networks Ltd had sought approval of the existing foreign investment (50 per cent indirect) and to permit commencement of activities as a Telecom Infrastructure Provider Category-I. The proposal does not entail any new FDI.

The total FDI inflow from the four proposals which were cleared would be about Rs 1,810 crore, the official added.

Out of the nine proposals which were discussed by the FIPB today, four was deferred and one was withdrawn.

The FIPB, headed by Economic Affairs Secretary, is an inter-ministerial panel and can approve foreign investment proposals of up to Rs 5,000 crore.

The four deferred proposals include Aviva Life Insurance to increase the foreign shareholding from 26 per cent to 49 per cent.

Also, it included Tata Sikorsky which had sought FIPB approval for non-resident to non-resident transfer of 26 per cent of the shares of Tata Sikorsky Aerospace from United Technologies International Corporation - Asia Private Ltd to Lockheed Martin Global, Inc. (USA).

Besides, the proposal of Sharekhan Ltd and Quantum Simulators Pvt Ltd was deferred by the board.

The one proposal which was withdrawn was that of SunE Solar BV as it came under automatic route.

The FIPB today also took on record nine other proposals, which were cleared by the Department of Industrial Policy and Promotion (DIPP), totalling about Rs 200 crore.