The government on Wednesday approved 10 foreign direct investment (FDI) proposals involving total inflow of Rs 2,339 crore, including investment banker Morgan Stanley’s plan to invest Rs 1,894 crore in the country.
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The FDI proposals approved by finance minister P Chidambaram relate to sectors such as stock broking, banking, chemicals, automobiles, information technology and publishing. The government allowed Morgan Stanley, Mauritius, to invest up to $465 million (about Rs 1,894 crore) in shares and convertible preference shares to be issued by Morgan Stanley, India, to undertake stock broking, merchant banking and other NBFC activities.
Luxocitta Holland, the maker of sunglasses, has been permitted to set up a wholly-owned subsidiary to undertake wholesale cash and carry trading in the eyewear industry. The government also allowed Daimler Chrysler, India to expand the scope of its current operations to manufacture chassis of trucks and buses. The proposal does not envisage any inflow of foreign fund.
Rakindo Developers, Chennai has been permitted to set up a joint venture to act as a holding company for making downstream investment in construction development projects with a foreign investment of Rs 407 crore.
Besides, the Netherlands-based EMAP Publishing has been allowed to pick up 40.1% equity for Rs 4.81 crore in Next Gen Publishing which publishes a car magazine.
