FIPB clears worth Rs 13k cr FDI proposals
The Dollar Business
The FIPB (Foreign Investment Promotion Board) has cleared proposals amounting to Rs.13,030 crore that includes the proposals of Axis Bank asking to increase the shareholdings of foreign investors to 74 percent.
According to the finance ministry sources, in its meeting on Friday, the government panel has cleared five proposals out of 14.
Axis Bank, the third largest private sector bank in India, got the nod from the government to increase the limit of foreign direct investment (FDI) from 62 percent to 74 percent. The proposal involves an inflow of foreign investment of around Rs 12,900 crore.
Currently, the private banks in India have a limit on accepting foreign investment to 74 percent, and the limit for Foreign Institutional Investors (FII) is 49 percent.
Besides, the panel also cleared proposals of pharmaceutical firms - Wockhardt and Aurobindo.
Under the new policy, the decision on the proposal from DCNS - a leader in submarine systems globally, first for 100 percent FDI in defence, was postponed by the inter-ministerial panel as the defence and home affairs ministries needed more time to study the proposal.
In November last year, the Government of India has changed the rules for FDI in the defence sector, permitting up to 49 percent foreign investment through automatic route.
The FIPB has rights to clear proposals up to Rs 5,000 crore. Proposals above that amount need to be scrutinised by the Cabinet Committee on Economic Affairs (CCEA).
During the period of April-December 2015-16, foreign investment in India surged by 40 percent, amounting to $29.44 billion.