The Foreign Investment Promotion Board (FIPB) has approved 20 proposals worth Rs 916 crore including Singapore Airlines proposal of Rs 303.18 crore to form a partnership with Tata Sons to start a full service airline.
Among other major proposals, FIPB cleared Rs 179.43-crore proposal of Religare Enterprises to issue warrants to carry out the business of Investment Advisory Services and Financial Consultancy, JM Financial proposal of Rs 22.19 crore to issue warrants to set up a core investment company and Rs 130 crore Perrigo API India's proposal to increase the foreign equity participation from 85 percent to 100 percent by way of issue of fresh equity shares and transfer of equity shares in a pharma sector company. Meanwhile, FIPB has referred to the Cabinet Committee on Economic Affairs (CCEA) the Rs 1,400 crore proposal of Federal Bank to increase the foreign equity to 74 percent and for post facto approval for exceeding the foreign equity cap of 49 percent by 7.16 percent.
FDI is considered crucial for economic development of a country and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors which include telecom, tea, pension and petroleum and natural gas. Now, it has also started exercise in allowing FDI in railways sector besides liberalising FDI norms for construction and housing sector. Further, a rise in FDI will help support the rupee, which depreciated over 15 percent against US dollar in 2013. Despite the government's various efforts to increase foreign investment, FDI during the April-August period of 2013-14 has grown by a marginal 4 percent to $8.46 billion, from $8.16 billion in the first five months of 2012-13, reflecting the need to take more measures to improve the business environment in the country.
Among other major proposals, FIPB cleared Rs 179.43-crore proposal of Religare Enterprises to issue warrants to carry out the business of Investment Advisory Services and Financial Consultancy, JM Financial proposal of Rs 22.19 crore to issue warrants to set up a core investment company and Rs 130 crore Perrigo API India's proposal to increase the foreign equity participation from 85 percent to 100 percent by way of issue of fresh equity shares and transfer of equity shares in a pharma sector company. Meanwhile, FIPB has referred to the Cabinet Committee on Economic Affairs (CCEA) the Rs 1,400 crore proposal of Federal Bank to increase the foreign equity to 74 percent and for post facto approval for exceeding the foreign equity cap of 49 percent by 7.16 percent.
FDI is considered crucial for economic development of a country and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors which include telecom, tea, pension and petroleum and natural gas. Now, it has also started exercise in allowing FDI in railways sector besides liberalising FDI norms for construction and housing sector. Further, a rise in FDI will help support the rupee, which depreciated over 15 percent against US dollar in 2013. Despite the government's various efforts to increase foreign investment, FDI during the April-August period of 2013-14 has grown by a marginal 4 percent to $8.46 billion, from $8.16 billion in the first five months of 2012-13, reflecting the need to take more measures to improve the business environment in the country.
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