India Approves Rs10.24 Billion in FDI Proposals
MUMBAI – The Indian Foreign Investment Promotion Board (FIPB) has approved eight foreign investment proposals worth over Rs10.24 billion (about US$ 161 million). The eight investment proposals include the following:
- L&T Infrastructure Development Projects was approved to allot securities to a wholly-owned subsidiary of Singapore-based CPP Investment, in a move worth roughly Rs10 billion (about US$160 million).
- The Asian Development Bank was given the go-ahead to purchase a 13.3 percent stake in Welspun Renewables Energy Ltd. for Rs3.10 billion (US$ 50 million).
- Approval was given to Deutsche Investitions to buy convertible debentures for Rs2.20 billion (US$35 million).
- Cordlife Sciences India was permitted to increase foreign equity participation by up to 100 percent and issue convertible percentage shares.
- Other approved proposals were submitted by Regulatory Healthcare Service, Rajoo Bausano Extrusion, Eurecat India Catalyst Services and ZF India.
A proposal from Singapore-based KKR Floorline Investments regarding investment proposals in Gland Pharma and Gland Celsus Bio Chemicals was referred to the Cabined Committee on Economic Affairs (CCEA) for further consideration while three investment proposals were rejected outright.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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Taking Advantage of India’s FDI Reforms
In this issue of India Briefing Magazine, we explore important amendments to India’s foreign investment policy and outline various options for business establishment, including the creation of wholly owned subsidiaries in sectors that permit 100 percent foreign direct investment. We additionally explore several taxes that apply to wholly owned subsidiary companies, and provide an outlook for what investors can expect to see in India this year.