FM clears 10 FDI proposals

Finance Minister P Chidambaram has cleared 10 proposals for foreign investments including one by Morgan Stanley Mauritius Company (Morgan) to invest Rs 1,894 crore to carry out securities sales, trading and broking, merchant banking and corporate advisory services and other NBFC activities. The total proposals approved amount to Rs 2,340 crore. The proposals were earlier cleared by the Foreign Investment Promotion Board (FIPB) in it meeting held on June 22. Morgan will invest in a mix of equity and compulsorily convertible preference shares to be issued by Morgan Stanely India Securties. The proposal attracts Press Note 1.Another proposal by Chennai-based Rakindo Developers to invest Rs 407 crore through a JV to make downstream investment in construction development projects was also approved.A proposal by Japan''s Furukawa Electric to invest Rs 19 crore through a JV company with a foreign equity of up to 51% to undertake design, development, manufacture, testing, assembling, marketing, selling, distributing and servicing of wire harness for two-wheelers and automobiles was also given the green signal.Among other proposals cleared include Daimler Chrysler India''s proposal for extension of present activity to cover local manufacturing of commercial vehicles, Colorcon''s plea to allow prospective royalty payment on domestic or export sales without any restriction of time limit, introduction of foreign equity up to 40% by Netherland''s FMAP Publishing in Next Gen Publishing, Power Supply Systems Holdings proposal to introduce foreign equity up to 100% in Indian Investee company and Luxottica Holland BV''s proposal for setting up of WOS to undertake wholesale cash and carry trading in the eyewear industry.