The Foreign Investment Promotion Board (FIPB) on Monday cleared 15 foreign direct investment (FDI) proposals worth Rs 12,200 crore out of the 24 proposals it discussed, while rejecting three and deferring six.
Those proposals which got the green light include Twinstar Technologies Co. Ltd.'s Rs 9,000-crore proposal, Apollo Hospitals Enterprise Ltd.'s proposal worth Rs 750 crore, and a proposal of Vodafone India, a senior finance ministry official told reporters in New Delhi. Twinstar's proposal would also need approval of the Cabinet Committee of Economic Affairs (CCEA), he added.
India allows FDI in most sectors through the automatic route, but in certain segments that are considered sensitive for the economy and security, the proposals have to be first cleared by the FIPB. Currently, FDI investments above Rs 5,000 crore need CCEA's approval.
The official said that Vodafone's proposal did not involve a significant amount of foreign capital.
The inter-ministerial body rejected three proposals, and deferred six proposals including Gland Pharma Ltd.'s Rs 8,800-crore buyout by China's Fosun Pharmaceuticals.
The official also said that FIPB, headed by Economic Affairs Secretary Shaktikanta Das, is still accepting fresh FDI proposals, and will continue to do so until a fresh mechanism is created by the government for such investments.
In his 2017-18 Union Budget speech, Finance Minister Arun Jaitley had said that the FIPB would be abolished, and a new mechanism for FDI proposals would be put in place soon.
“The Foreign Investment Promotion Board (FIPB) has successfully implemented e-filing and online processing of FDI applications. We have now reached a stage where FIPB can be phased out. We have therefore decided to abolish the FIPB in 2017-18. A roadmap for the same will be announced in the next few months,” Jaitley had said.
Also Read: Budget 2017: FIPB Abolished, Foreign Investors To Get Single-Window Clearance
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