Foreign deals worth 281 crores of 21 Foreign Direct Investment or FDI’s have been cleared by the government, but deferred Kotak Mahindra Bank to hike the Foreign investment in the bank to 55%. FDI proposals under approval route are cleared by Foreign Investment Promotion Board FIPB. But these proposals involving more than 3000 crores are cleared by CCEA or Cabinet Committee On Economic Affairs.
- The proposal of pharma firm La Renon Healthcare in investing 100 crores in brownfield project was cleared by the FIPB in meeting on April 30th 2015.
- Chaired by economic affairs secretary,inter-governmental panel also cleared Blue Dart express to get shares in Blue Dart Aviation ltd and hike the shareholding to 74% from 49%. It would require an investment of 52.8 crores to 69 crore rupees.
- Quickjet Cargo Airlines proposal of increasing foreign share holding in the company from 62.34 % to 74% has also been cleared and the deal entails FDI worth 14.4 crore rupees.
- Forever Living Imports[India] Pvt Ltd 18.3 crore proposal to undertake single brand retailing of ”Forever ”brand products in India has also been approved by the board.
- FIPB has deferred the proposal of Mumbai based Kotak Mahindra Bank .
- Proposal of NBFC company IIFL holdings Ltd for increasing foreign equity from 54.7% to 100% by issuing shares is also deferred.
- Sharekhan Ltd and Human Value Developers Pvt ltd transfer of CCDs and CCPs of their firms held by IDFC Ltd to Bring Private Equity, Mauritius.
FDI, Foreign Direct Investment
- It is controlling ownership in a business enterprise in one country to an entity in other country.
- FDI includes mergers and acquisitions, building new facilities, reinvesting profits earned from foreign operations.
- Thre types of FDI are horizontal, vertical and platform FDI.
- Some forms of FDI incentives are low corporate tax and individual income tax rates, tax holidays,SEZ, bonded warehouses.
FIPB– what is it??
- FIPB is an national agency of Indian government with remit to consider and recommend FDI.
- Provides single window clearance for proposals on FDI.
- Chairman is the secretary of Department of Economic Affairs.
- Set up by government to increase the flow of foreign direct investments into the country.
- FIPB function is to quickly approve foreign investment proposals, identify sectors that needs FDI investment etc,