Government Approves Four (4) Proposals of Foreign Direct Investment (FDI)



Government Approves Four (4) Proposals of Foreign Direct Investment (FDI) 


            Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its 240th Meeting held on 26th September 2016, the Government of India has approved four (04) of Foreign Direct Investment (FDI) proposals as per details enclosed.


The following four (04) proposals have been approved:
S. No
Item No
Name of the applicant
Gist of the proposal
Sector
FDI (Rs.  crore)
1
1
M/s DiaVikas Capital Private Limited
Approval has been sought by M/s DiaVikas Capital Private Limited for buy-back of all the shares from the resident shareholders thereby increasing the foreign shareholding in the company to 100%.
CIC
Nil
2
4
M/s IFC FIG Investment Company I
Approval has been sought by M/s IFC FIG Investment Company I (Transferee) to purchase 3,646,937 equity shares of Bandhan Financial Services Ltd. from International Finance Corporation, constituting 2.85% of the paid up equity share capital of Bandhan Financial Services Ltd. (BFSL).
NBFC
Nil
3
10
M/s IBM India Pvt Ltd
Approval has been sought by IBM India Private Limited for the following:
     i.            Merger of its Wholly owned subsidiaries i.e. Telelogic India Private Limited, Unica Softtech Systems India Private Limited and Bigfix Software (India) Private Limited (all dormant companies) into its another WoS, Sterling Commerce Solutions Private Limited which is an investing company.
   ii.            Post-facto approval for Telelogic India Private Limited, a subsidiary of IBM India to act as an investee company which is holding investments in IBM Business Consulting Services Private Limited till its merger into Sterling India
iii.            Post facto approval for Network Solutions Private Limited for holding 2 shares in Telelogic India.
iv.            Post facto approval for Unica Softtech Systems India Private Limited, Bigfix Software (India) Private Limited and Sterling Commerce Solutions Private Limited for acting as dormant companies, after transfer of software development business to their holding company, IBM India.
  v.            Post facto approval for M/s Micromuse India Private Limited, Cognos Software Private Limited, Ascential Software (India) Private Limited, Corio India Infotech Services Private limited and PSDI India Private Limited for acting as dormant companies, after transfer of software development business to their holding company, Telelogic India.
IT, Investing company
Nil
4
14
M/s Sharekhan Limited
Approval has been sought for:-
  1. Acquisition of up to 100% of the share capital of M/s Sharekhan Limited (‘SKL/Sharekhan’) other than the shares held in Sharekhan by M/s Human Value Developers Private Limited (‘HVD’) by M/s BNP Paribas SA France (‘BNPP’) and/or one or more of BNPs French subsidiaries
  2. Acquisition of 100% capital of HVD by BNPP and/ or one or more of BNPs French subsidiaries


The following three (03) proposals have been deferred:
S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
7
M/s Flag Telecom Singapore Pte Limited
M/s Flag Telecom Singapore Pte. Limited, Singapore an indirect wholly owned subsidiary of Reliance Communications (RCOM), India has sought approval to acquire 100% shares of M/s Reliance Global Cloud Xchange Limited which has been recently incorporated in June 2016 by Indian residents.
Telecom
2
9
M/s You Broadband India Limited
M/s You Broadband India Limited (YBIL) has sought post facto approval for acquisition of 9,79,875 equity shares of its downstream company M/s Digital Outsourcing Private Limited (DOPL) in lieu of issue of 20,58,759 equity shares to its resident shareholders by way of swap of shares
Telecom
3
12
M/s Idea Cellular Infrastructure Services Limited
M/s Idea Cellular Infrastructure Services Limited (ICISL) is a wholly owned subsidiary of IDEA, which has become a foreign owned company with more that 50% foreign investment. Accordingly, ICISL is also deemed to have foreign investment in excess of 50% as a mirror image of its parent company. The proposal is to take on record the increase of foreign investment in ICISL beyond 50% and allow foreign investment in ICISL up to 67.5%.

The following four (04) proposals have been rejected:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
2
M/s Limpkin Telecom Private Limited
M/s Limpkin Telecom Private Limited has sought approval for 100% foreign investment for providing telecom services from Ms. Jorden Elizabeth, a UK citizen for an aggregate consideration of INR 3.00 crore.
Telecom
2
3
M/s Damco Soft Private Limited
M/s Damco Soft Private Limited  has sought ex post facto approval and regularization for the initial pre incorporation expenses of Rs. 33,72,924/-made by its parent company M/s Damco Solutions Limited, UK
IT/ITES
3
6
M/s Packt Publishing Services (India) Pvt.
M/s Packt Publishing Services (India) Pvt. Ltd has sought approval to allot 99% equity shares (99%) to its holding Company M/s Packt Publishing Limited, UK as its first subscriber.
Print and Publication
4
12
M/s BT Global Communica-tions
M/s BT Global Communications (Mauritius) Limited has sought approval to acquire remaining 26%  equity and preference share capital of M/s BT Telecom India Private Limited (Investee Company) from M/s Jubilant Stock Holding Private Limited, which will result in increasing its shareholding in the investee company from 74% to 100%.

The following four (04) proposals do not lie before FIPB:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
5
M/s Perrigo API India Pvt. Ltd.
Approval has been sought by M/s Perrigo API India Pvt. Ltd. to increase the stake of M/s Perrigo Netherlands B.V. from 85% to 90.35% by conversion of ECB loan and related outstanding interest into equity by issuing 2,84,12,274 equity shares. As per FIPB approval dated December 5, 2013, 100% FDI is permitted in the Company.
Pharma
2
10
GS Sarin
Post-facto approval has been sought by M/s Wuxi Yushou Medicare Private Limited for receiving foreign investment of 0.87 crores from Wuxi Yushou Medical Appliances Co. Ltd in November 2014, without FIPB approval.
Medical devices
3
15
M/s Whizdm Innovations Private Limited
The company has proposed to undertake activities of mutual fund distributor through its mobile application namely, Moneyview to assist its users in investing into mutual funds.In this context, the Company has sought:

(i)     Confirmation of the FIPB that the proposed activities of acting as a mutual fund distributor are under the automatic route.
(ii)    If the proposed activities fall under the other financial services sector which is under approval route, FIPB’s approval may be granted.
Financial Services
4
16
M/s BNP Paribas Asset Management India Private Limited
M/s BNP Paribas Asset Management India Private Limited, (BNPP AMC), a 100% foreign owned company has sought approval for downstream investment into M/s MF Utilities India Private Limited (MFUI), which is registered with SEBI for acting as registrar to an issue in Category II* (to carry on the activity either as a registrar to an issue or as a share transfer agent).  For said investment, MFUI proposes to issue fresh equity share capital to BNPP AMC.
Financials services

The following one (01) proposal has been withdrawn:

S. No.
Item No
Name of the applicant
Gist of the proposal
Sector
1
13
M/s Morgan Stanley India Primary Dealer Pvt. Ltd.
M/s Morgan Stanley India Primary Dealer Pvt. Ltd. has sought approval for increasing equity participation from 75% to 100% by way of transfer of equity shares from M/s Morgan Stanley India Capital Private Limited (indirectly owned by Foreign Investor) to M/s Morgan Stanley Mauritius Company Limited, Mauritius by amending the earlier approval.
Financial Services

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NBCC OFS gets oversubscribed 1.54 times in non-retail category and 1.50 times in retail category. 

The Sixth (6th) CPSE disinvestment of the Fiscal Year 2016-17 took place on 20th and 21st October, 2016 with the National Building Construction Corporation (NBCC) OFS getting oversubscribed 1.54 times in non-retail category and 1.50 times in retail category. 

On offer was 15% paid-up equity capital of the company comprising 9,00,00,000 shares, each of FV of Rs.2. Out of the shares on offer for sale, 20% were reserved for retail investors. The closing price on 19/10/2016 was Rs.253.00 (BSE)/ Rs.253.30 (NSE) and floor price was fixed at Rs.246.50. 

As per the new SEBI guidelines, only non-retail investors were allowed to place their bids on 20th October, 2016 (T Day) for non-retail portion, and retail investors were allowed to bid on 21st October, 2016 (T+1 day). 

The retail investors bid today (T+1) for 20% of the portion reserved for them, i.e., 1,80,00,000 equity shares of the Company amounting to Rs.443.70 crore at floor price. They had the option to place a price bid or opt for bidding at cut off price. The new arrangement provides retail investors the benefit of discovering the cut off price of T day and place their bids on T+1 day on a more informed basis than was the case earlier. As usual retail investors i.e. those investors who place bids for shares of total value of not more than Rs.2.00 lakh, will in addition be entitled to a 5% discount. The discount to retail investors shall be applicable to bids received today (T+1). 

With this disinvestment, the Government of India share in NBCC will come down to 75%.

At the end of the day with total subscription of Rs.3098 crore against Rs.2218 crore (at floor price), the NBCC OFS stood oversubscribed by 1.4 times. 

The highlight of the issue has been the encouraging FII participation of Rs.369.21 crore which works out to be 21% of the non-retail basket. 

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Consolidated Status Paper on Government Debt for the year 2016 released; Overall liabilities of the Central Government as percentage of GDP have stabilized in recent years after witnessing a consistent decline since 2001-02. 

The Government of India has been publishing a number of documents detailing overall debt position of the country, consolidated data relating to public debt, debt management strategies of Central Government Debt, etc. These publications include an Annual Government Debt Status Paper (since 2010), Debt Management Strategy document (2015) and Handbook of Statistics on Central Government Debt (since 2013). It has now been decided to consolidate all these publications into ‘Status Paper on Government Debt’ Report to bring complete Government Debt and its Management related information at one place. This consolidated Status Paper on Government Debt for year 2016 is being released today.

                                   The Report provides information on various facets of debt management, such as debt profile of Central Government, Debt Management Strategy in medium term (2016-19), data relating to public debt, a detailed discussion on the trend, composition and features of Central Government liabilities as well as consolidated General Government Debt as at end-March 2016, including a detailed discussion on State Government debt. The Report also provides an assessment on aspects of debt sustainability and attempts to benchmark the efficiency of India’s Public Debt Management on internationally accepted debt performance indicators.

                                         The overall liabilities of the Central Government as percentage of GDP have stabilized in recent years after witnessing a consistent decline since 2001-02. Government has predominantly been resorting to market linked borrowings for financing its fiscal deficit. The Government’s debt portfolio is characterized by prudent risk profile. Conventional indicators of debt sustainability indicate that debt profile of Government is comfortably placed in terms of sustainability parameters of public debt. The Government’s borrowing programme is being planned and executed in terms of DMS.

 The Status paper is available on Ministry of Finance’s website www.finmin.nic.in

Click Here to See Status Paper on Government Debt.
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India Signs Guarantee Agreement with the World Bank For IBRD direct lending of US$ 650 million to the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL) for Eastern Dedicated Freight Corridor-III (EDFC-III) Project 

A Guarantee Agreement for World Bank (IBRD) lending of US$ 650 million to the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL) for Eastern Dedicated Freight Corridor-III (EDFC-III) Project has been signed between the Government of India and the World Bank here today in the national capital. This Agreement was signed by Shri Raj Kumar, Joint Secretary (MI), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Hisham Abdo, Acting Country Director, World Bank, India on behalf of the World Bank.

The objective of the EDFC-III Project is to augment rail transport capacity, improve service quality and enhance freight carriage throughput on the 401 km Ludhiana-Khurja section of the Eastern Dedicated Freight Corridor; and develop institutional capacity of DFCCIL to build, maintain and operate the entire DFC network. This project is in continuation of Phase-I and II of the EDFC Projects being implemented by the DFCCIL with the World Bank loan of US$ 975 million and US$ 1100 million respectively on the Dadri-Khurja-Kanpur; and Kanpur-Mughal Sarai stretches of the Eastern Rail Corridor (Ludhiana-Delhi-Kolkata). The project will directly benefit the power and heavy manufacturing industries of Northern and Eastern India, which rely on railway network for transportation of their material inputs and also for the distribution of bulk processed and semi-processed commodities and consumer goods. Railway passengers will also be benefitted through decongestion of the existing passenger lines.

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FM: Investment in irrigation projects essential to double the farmers income by 2022; NABARD sanctions loan worth Rs. 19,702 crore to National Water Development Agency (NWDA) for 50 irrigation projects from 11 States under Long Term Irrigation Fund (LTIF)] 


The Union Finance and Corporate Affairs Minister Shri Arun Jaitley said that investment in irrigation projects essential to double the farmers income by 2022. He said that loan of Rs 19,702 crore to National Water Development Agency (NWDA) for irrigation projects by NABARD, is a part of the vision of the Prime Minister Shri Narendra Modi to double the farmers’ income by 2022. Shri Jaitley said that providing assured irrigation to farmers is one of the important prerequisites to achieve that target. The Finance Minister said that this loan would be part of the Central share of assistance to State Governments and will ensure front loading of resources so that the identified incomplete irrigation projects under Pradhan Mandtri Krishi Sinchai Yojna (PMKSY) are executed in time. He further said that this unique initiative would help complete not only the irrigation projects but also the Command Area Development works which are central to ensure full utilisation of irrigation potential so created. He highlighted that the initiative would bring additional 76 lakh hectare area under irrigation and to a great extent, mitigate water scarcity, dependence on rain and drought situations in project areas. He appreciated the initiatives of the Ministry of Water Resources, River Development & Ganga Rejuvenation and National Bank for Agriculture and Rural Development (NABARD) He said that the Ministry of Finance is committed to support such endeavours. He advised the agencies to undertake very close monitoring of the progress of work to ensure timely completion of all the projects.

Speaking on the occasion, the Minister of Water Resources, River Development and Ganga Rejuvenation Sushree Uma Bharati, said that her Ministry is committed to ensure that the project works are completed by the State Governments as per schedule and exhorted them to complete the required formalities in time. She shared the vision of the Prime Minister to ensure ‘Har Khet ko Paani’ and “Per drop more crop” which the Ministry is trying to translate into reality. She emphasised that the irrigation potential would be enhanced through participation of farmers. She also highlighted a strong monitoring mechanism put in place to ensure that the money is effectively and optimally utilised.


Earlier, NABARD has set-up a Long Term Irrigation Fund (LTIF) as a sequel to the path breaking initiative announced by the Union Finance Minister Shri Arun Jaitley in this regard in his Budget Speech 2016-17. NABARD has sanctioned a loan of Rs. 19,702 crore to National Water Development Agency (NWDA), the agency of the Union Ministry of Water Resources, RD & GR, towards Central Government share in 50 identified irrigation projects from 11 States. This would help create additional irrigation potential of 39.14 lakh hectares under these projects in 11 States. Loan released by NABARD to NWDA would be disbursed to the respective State Governments as Central Share in the projects sanctioned.


NABARD today handed over the sanction letter of loan amounting to Rs 19,702 crore and a cheque for Rs 1,500 crore towards the First Instalment of loan disbursement to NWDA in the august presence of the Union Finance Minister Shri Arun Jaitley and Sushri Uma Bharati, Minister of Water Resources, River Development and Ganga Rejuvenation, (MoWR, RD & GR), at a function organised by NABARD in North Block, in national capital today to mark operationalisation of the LTIF. Dr. Sanjiv Balyan, Minister of State, Water Resources, River Development and Ganga Rejuvenation, Shri Brij Mohan Agrawal, Minister for Water Resources, Agriculture and Animal Husbandry, Government of Chhattisgarh and Shri Girish Mahajan, Minister, Water Resources, Government of Maharashtra also graced the occasion. The event was attended among others by the Senior officials of various Ministries of the Government of India and NABARD.


Dr Harsh Kumar Bhanwala, Chairman, NABARD said that besides supporting the central share component, NABARD would also be extending 15year loan support to the willing State Governments at reasonable rate of interest to meet their share in the identified irrigation projects. The total fund requirement is expected to be of the order of Rs 78, 535 crore in the next four years up to 2020, with the shares of the Central And State Governments at Rs 31,342 crore and Rs 46,253 crore, respectively. He said that through LTIF the irrigation potential in the country was expected to go up by 11.50 % in the next four years.

Shri Shashi Shekhar, Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation informed that the programme will be implemented in a Mission mode and the Ministry was gearing-up for very close monitoring of this massive programme.



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