FIPB clears 11 FDI proposals, refers Glenmark, Aurobindo deals to CCEA

New Delhi: FIPB has cleared foreign investment in 11 entities, entailing Rs 1,075.91 crore, and referred proposals worth Rs 4,187 crore in pharma firms - Glenmark and Aurobindo - to the Cabinet Committee on Economic Affairs. [caption id=“attachment_1778663” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] “Based on the recommendation of Foreign Investment Promotion Board (FIPB) in its meeting held on 4 February 2015, the government has approved 11 proposals of Foreign Direct Investment (FDI) amounting to Rs 1,075.91 crore approximately,” the Finance Ministry said in a statement. FIPB cleared the proposal of Mumbai-based SeQuent Scientific Ltd for raising Rs 400 crore through QIP and issue of Foreign Currency Convertible Bonds. JP Morgan Asset Management (Asia) Inc USA has got approval for the acquisition of remaining 25 percent held by JP Morgan India Pvt Ltd in the joint venture set up in 2006 by the two companies. It entails investment up to Rs 80.13 crore. The proposal of BLP Wind Assets Holding Pvt Ltd for setting up a joint venture firm for making downstream investments in the renewable energy sector has been approved. It entails an investment of Rs 371 crore. However, FIPB has sent the proposal of Mumbai-based Glenmark Pharmaceuticals to the Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, to raise the cap of foreign institutional investor (FII) holding to 49 percent, from 35.07 percent at present. FIBP has also sent the proposal of Hyderabad-based Aurobindo Pharma for bringing in Rs 2,165 crore foreign investment by Qualified Institutional Buyers to the CCEA. “The two proposals have been recommended for consideration of the CCEA, as the investment involved in each of the proposal is above Rs 1,200 crore,” the statement said. Besides, FIPB has deferred an investment proposal of Hyderabad- based Mylan Laboratories Limited for increase in the level of FDI in company by existing non-resident shareholders, MP Laboratories (Mauritius) Ltd, and Mylan Luxembourg 2, pursuant to a composite scheme of arrangements. It rejected foreign investment application of Johnson and Johnson Limited’s proposal seeking deletion of the standard pharma conditions, stipulated in the approved letter. The other proposals cleared by FIPB include Solar Arise India Pvt Ltd for receiving FDI from overseas investors and investing in various SPVs for solar projects. The proposal of Singapore-based AppDynamics Asia Pacific Pte Ltd for replacing of partners of the proposed LLP, as the existing have tendered their resignation, has been rejected, the statement said. PTI