India clears 41 investment proposals worth Rs 2.06 B

Wednesday, 27 November 2002, 08:00 Hrs   |    12 Comments
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India Tuesday cleared 41 foreign direct investment proposals worth 2.06 billion. This included Suzuki Motor Corporation's plan to set up an aluminium foundry plant with an investment of 120 million.

NEW DELHI: Suzuki will acquire a 51 percent stake in the plant, to be set up in joint venture with Maruti Udyog Ltd. Scheduled to come up in Gurgaon, on the outskirts of the Indian capital, the plant will manufacture aluminium castings for various applications including automobiles. According to a statement by the commerce ministry, the major proposals cleared by Commerce and Industry Minister Arun Shourie Tuesday pertained to sectors like biotechnology, telecommunications and manufacture of electrical components. Information technology and software development, consultancy, and non-banking financial services also find a mention. Siemens of Germany got approval for increasing its equity in Mumbai-based VXL Landis & GVR Ltd from 87.26 percent to 100 percent with a fresh infusion of 250 million. VXL Landis & GVR Ltd are manufacturers of specialised electric meters and control panels. Mauritius-based South Asia Regional Fund's (SARF) proposal to hike foreign equity from 44.7 percent to 57 percent in the Secunderabad-based Satyam Infoway at a cost 650 million has also been cleared. Cargill International Trading Pvt Ltd of Singapore has been given permission to set up trading and consultancy services through a wholly owned subsidiary that will see an investment of 250 million. London-based Travalex Plc has received the go ahead for setting up a wholly owned forex broking and money changing business with an investment of 400 million. "Despite an estimated 27 percent decline in global FDI inflows this year, India has witnessed a 60 percent increase in the first half of this year," Industry Secretary V. Govindarajan said here Tuesday at a session on FDI at the India Economic Summit. India is examining a proposal to change some of the laws to bring the definition of FDI in conformity with the International Monetary Fund(IMF). Under the proposal reinvested earnings, subordinated debt and overseas commercial borrowings would be included in the tally. Going by the current definition India's highest FDI inflow has been only around $4 billion, as against China's of over $44 billion.
Source: IANS