The Government has announced it has approved 18 foreign direct investment proposals that will bring in Rs 1,553.26 crore, including Rs 560 crore by Essar Capital Limited, the Finance Ministry approved the proposals at a meeting held on 7th March.
Among the approved proposals, Essar Capital Limited would invest Rs 560 crore to acquire the status of holding company for downstream investments.
Cyprus-based Melbrook Ltd would bring in an FDI of Rs 125 crore for changing its status from operating company to operating cum holding company.
Redington India Limited would bring in Rs 195 crore by way of foreign equity by holding company, while Ortel Communications would effect a compulsory convertible for Rs 60 crore.
JSW Energy would induct FDI of Rs 63.23 crore in a holding company through IPO.
The government has, however, rejected four FDI proposals.
These were from Red Fort India Realty Fund, Azorim International Holdings Ltd, Wadhwa Associates Realtors and Xcel Telecom Pvt Ltd.
Seven proposals have been deferred, including those from Singapore-based Singtel Australia Pte Ltd, and KNOX Holding Pte Ltd.
Singtel’s proposal was to set up long distance telephony services.
Besides, two FDI proposals have been recommended for consideration of the Cabinet Committee for Economic Affairs.
These were from Chennai-based Rakindo Developers Pvt Ltd and Agam SPV Ltd from Caymen Islands.
No FDI in retail sector: Govt
The Government is not considering any proposal to allow foreign direct investment (FDI) in retail sector, Agriculture Minister Sharad Pawar said on Friday.
“There is no proposal to allow FDI in retail (and) Government is not thinking of it because it wants to protect the interest of retailers,” he said replying to supplementaries during Question Hour in Rajya Sabha.
He said International Council for Research on International Economic Relations (ICRIER) will submit its report on impact, if any, of domestic organised retailing on the unorganised retail sector by May-end.
The study on ‘The Impact of Organised Retailing on the Unorganised Retail Sector’ was commissioned in March 2007. ICRIER was to submit its report in July 2007 but the schedule was changed to enable additional survey.
It would cover “effect of organised retailing on small retailers and vendors in the unorganised sector keeping in mid the likely growth in the overall market and effect on employment,” he said.
The recommendations and findings of the study would help Governemnt take a view on the need to have a policy on the issue, he said.
Pawar said that the Centre does not regulate retailing and it falls under the jurisdiction of the state governments. State governments can allow or disallow setting up of retail establishments.
“The retailers/traders register their shops with concerned authorities in various states. At present, there is no restriction on the entry of any domestic investor into retail sector,” he said pointing to 10-12 big corporate and industrial houses envincing interest in organised retail.
