FIPB to take up 17 FDI proposals on December 16

NEW DELHI: Inter-ministerial body FIPB on December 16 will again take up investment proposals of Cadila Healthcare and Holcim (lndia) following recent changes in the foreign direct investment (FDI) policy.
Proposals of Cadila Healthcare and Holcim (lndia) were earlier recommended by the FIPB for consideration of Cabinet Committee on Economic Affairs (CCEA), but are "listed" on the agenda of the December 16 meeting "in the light of Press Note No. 12 of 2015", the Finance Ministry said while releasing the agenda of the next meeting.

Through the Press Note 12 issued in November, the government had made a host of changes in the extant FDI policy.

Besides these two, the Foreign lnvestment Promotion Board (FIPB) will also take up 15 other investment proposals.

FIPB had recommended the Rs 5,000 crore Cadila Healthcare proposal for consideration of CCEA.

Cadila Healthcare is seeking approval for fresh equity infusion of up to Rs 5,000 crore under FDI route by QIBs through Qualified Institutional Placement on a private placement basis for the expansion of the business.

The proposal of Ambuja Cements for acquisition of 24 per cent shares in its holding company Holcim (India) for a share swap worth Rs 3,500 crore too was referred to the CCEA.

The other proposals to be taken up on December 16 include that of HSBC Securities and Capital Markets (lndia), Gulf Quarry General Trading FZC, Sai Life Sciences, and Equitas Holdings.

India allows FDI in most of the sectors through automatic route, but in certain segments considered sensitive for the economy and security, the proposals have to be first cleared by FIPB.

During the 2014-15 fiscal, FDI grew 27 per cent year-on- year to $30.93 billion as against $24.29 billion in 2013-14, according to the data of Department of Industrial Policy and Promotion (DIPP).