FDI on fast-track: 16 proposals cleared

The Indian government has cleared 16 Foreign Direct Investment (FDI) proposals, including those of Beacon’s unit Syngene, Torrent Pharmaceuticals and Star India Private Ltd, which amounted to Rs 6,750.86 crore (worth over $ 1 billion).

 According to a statement issued by the Finance Ministry, the proposals were based on the recommendations of Foreign Investment Promotion Board (FIPB).

All proposals were cleared during the FIPB meeting held in New Delhi on May 28. During the meeting, 21 proposals were deferred and six others were rejected.

 For Syngene International, the government’s investment approval meant that the company could now increase FII investment rate to 44 per cent from its existing 10 per cent by initial public offering of equity shares to FIIs, FPIs and NRIs.

 Torrent Pharmaceuticals can now increase foreign investment to 35 per cent from its existing 13.09 per cent.

Star India Private Limited has been given approval to merge with another Indian company engaged in broadcasting sector on a slump sale basis.  The company can also engage in further issuance and transfer of shares to its foreign collaborator.

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