Mumbai: Insurance companies will now have more leeway to invest in sectors such as IT and pharma. The Insurance Regulatory and Development Authority has increased the sector specific exposure limit for investments by insurers from 15 per cent to 20 per cent of their total investment.
Hitherto, insurers, both life and non-life, were permitted to take an exposure in a specific sector up to 15 per cent of their investments (which includes debt and equity), with the exception of banking and financial services where the limit is 25 per cent and infrastructure where there is no exposure limit.
According to IRDA investment norms, at any point of time, insurers are permitted to have excess weightage beyond 15 per cent in only one industrial sector (except BFSI and infrastructure sectors).In a circular issued on Wednesday, the regulator observed that the industrial weightage vis-a-vis the benchmark indices is dynamic and at present the IT industry contributes more than 15 per cent to the benchmark indices. As the weightage keeps on changing from time to time, the regulator said it has decided to give general permission to have a further exposure of 5 per cent in one industrial sector (not applicable to BFSI).
“This was a long pending request from the industry. We will be now able to allocate more funds to other sectors such as IT and pharma, which have been performing very well,” said the chief investment officer of a private life insurer.
For raising the investments in a specific sector, insurers are required to take prior permission from their board.
IRDA also relaxed norms for fixed deposit investments in the promoter group of insurance companies.
“Considering the representations from the industry and the Life Insurance Council, we have decided to permit fixed deposits, as stated in the regulations, in promoter group scheduled banks within the 5 per cent limit prescribed for Promoter Group subject to the overall limits,” said the regulator.
Success in my Habit
Thursday, October 31, 2013
India Inc raises Rs 1.70 lakh crore in first half of the current fiscal
Mumbai: Indian corporates raised Rs1.70 lakh crore through commercial papers (CPs) during the first half of the current fiscal. A total of 169 issuers raised this amount, which was down 15% from Rs 2.01 lakh crore raised by 184 issuers in comparable period of the previous fiscal, a report by Prime Database, the country's premier database on primary capital market, noted.
CPs are unsecured money market instruments issued to raise short-term funds with maturity period of less than one year. According to Pranav Haldea, MD, Prime, fund raising through CPs, which had witnessed a lot of buoyancy in the last two years, nearly dried up after RBI in mid-July raised the lending rates by 200 basis points (100 basis points = 1 percentage point) under the marginal standing facility, which is a penal lending rate.
"This had pushed up the short-term rates by more than 300 basis points, making it unviable for companies to borrow from the markets," Haldea said. The subsequent easing of short-term rates has again led to companies going to the CP market in place of higher-cost borrowings from banks, the report said. "Funds raised through CP, which were at Rs 36,702 crore in June but fell to Rs 29,520 crore in July and further to just Rs 7,652 crore in August, saw a reversal of trend in September with Rs 18,684 crore being raised," he said.
CPs are unsecured money market instruments issued to raise short-term funds with maturity period of less than one year. According to Pranav Haldea, MD, Prime, fund raising through CPs, which had witnessed a lot of buoyancy in the last two years, nearly dried up after RBI in mid-July raised the lending rates by 200 basis points (100 basis points = 1 percentage point) under the marginal standing facility, which is a penal lending rate.
"This had pushed up the short-term rates by more than 300 basis points, making it unviable for companies to borrow from the markets," Haldea said. The subsequent easing of short-term rates has again led to companies going to the CP market in place of higher-cost borrowings from banks, the report said. "Funds raised through CP, which were at Rs 36,702 crore in June but fell to Rs 29,520 crore in July and further to just Rs 7,652 crore in August, saw a reversal of trend in September with Rs 18,684 crore being raised," he said.
Pharmaceuticals Purchase Policy (PPP) for pharmaceutical central public sector enterprises
New Delhi: The Union Cabinet today approved the Pharmaceuticals Purchase Policy (PPP), for a period of five years.
The renewal of the PPP aims at ensuring optimum utilization of the installed capacity of the pharma CPSEs. It would not only provide necessary fillip in reviving these CPSEs, which are ailing but also ensure availability of quality medicines at low prices to the masses besides ensuring drug security of the nation.
The salient features of the Pharmaceuticals Purchase Policy (PPP), are as follows:
i) Pharmaceuticals Purchase Policy in respect of 103 medicines would be valid for a period of five years from the date of issue of orders by Department of Pharmaceuticals.
ii) Pharmaceuticals Purchase Policy will extend only to Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals such as Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and their subsidiaries where Government of India owns 51% or above shares.
iii) This would be applicable to purchases by Central Government departments, their Public Sector Undertakings, and Autonomous Bodies, etc. This would also be applicable to purchase of medicines by State Governments under Health Programmes funded by Government of India such as the National Rural Health Mission etc.
iv) The pricing of the products would be done by National Pharmaceutical Pricing Authority (NPPA) using the cost based formula, as mentioned in the Drugs Price Control Order, 95. A uniform discount of 16% would be extended to all products. All the taxes, whatsoever, would have to be passed on to buyers.
v) Annual revision of prices would be linked to Wholesale Price Index as per provisions contained in Drugs Prices Control Order, 2013.
vi) The procuring entity would purchase from pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule 'M' of the Drugs & Cosmetic Rules.
vii) In case pharma CPSEs and their subsidiaries fail to supply the medicines, the procuring entity would be at liberty to make purchases from other manufacturers. If the pharma CPSEs or their subsidiaries fail to perform as per the purchase order, they would also be subject to payment of liquidated damages or any other penalty as per the terms of the contract.
viii) The list of medicines may be reviewed and revised by the Department of Pharmaceuticals as per requirement.
The renewal of the PPP aims at ensuring optimum utilization of the installed capacity of the pharma CPSEs. It would not only provide necessary fillip in reviving these CPSEs, which are ailing but also ensure availability of quality medicines at low prices to the masses besides ensuring drug security of the nation.
The salient features of the Pharmaceuticals Purchase Policy (PPP), are as follows:
i) Pharmaceuticals Purchase Policy in respect of 103 medicines would be valid for a period of five years from the date of issue of orders by Department of Pharmaceuticals.
ii) Pharmaceuticals Purchase Policy will extend only to Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals such as Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and their subsidiaries where Government of India owns 51% or above shares.
iii) This would be applicable to purchases by Central Government departments, their Public Sector Undertakings, and Autonomous Bodies, etc. This would also be applicable to purchase of medicines by State Governments under Health Programmes funded by Government of India such as the National Rural Health Mission etc.
iv) The pricing of the products would be done by National Pharmaceutical Pricing Authority (NPPA) using the cost based formula, as mentioned in the Drugs Price Control Order, 95. A uniform discount of 16% would be extended to all products. All the taxes, whatsoever, would have to be passed on to buyers.
v) Annual revision of prices would be linked to Wholesale Price Index as per provisions contained in Drugs Prices Control Order, 2013.
vi) The procuring entity would purchase from pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule 'M' of the Drugs & Cosmetic Rules.
vii) In case pharma CPSEs and their subsidiaries fail to supply the medicines, the procuring entity would be at liberty to make purchases from other manufacturers. If the pharma CPSEs or their subsidiaries fail to perform as per the purchase order, they would also be subject to payment of liquidated damages or any other penalty as per the terms of the contract.
viii) The list of medicines may be reviewed and revised by the Department of Pharmaceuticals as per requirement.
CCEA approves Rs 500 cr for ‘green’ scheme for textile units
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing Development Scheme (IPDS) with a corpus of Rs 500 crore to make textile processing units more environment-friendly and globally competitive.
The fund will be used to set up four to six brownfield projects and three to five greenfield projects over the 12th Plan period addressing environmental issues faced by textile processing units, a Government release said.
The eligible projects under the scheme would cover Common Effluent Treatment Plants, captive power generation on technology preferably renewable/green technology, infrastructure such as storm water management, necessary roads and pipelines for water & wastewater and, facility for testing and R&D centres, the release added.
The scheme will support upgradation of existing processing clusters/centres specifically in the area of water and waste water management and also encourage research and development work in the textiles processing sector.
The fund will be used to set up four to six brownfield projects and three to five greenfield projects over the 12th Plan period addressing environmental issues faced by textile processing units, a Government release said.
The eligible projects under the scheme would cover Common Effluent Treatment Plants, captive power generation on technology preferably renewable/green technology, infrastructure such as storm water management, necessary roads and pipelines for water & wastewater and, facility for testing and R&D centres, the release added.
The scheme will support upgradation of existing processing clusters/centres specifically in the area of water and waste water management and also encourage research and development work in the textiles processing sector.
Railway Ministry sets up High Speed Rail Corp.
New Delhi: The Railway Ministry has formed a High Speed Rail Corporation, which will evaluate ways to implement high-speed train projects in India.
Incidentally, this is not the first such body announced by the Ministry. Earlier, the Ministry had announced formation of a High Speed Railway Authority to do a similar task. According to Ministry officials, both organisations will co-exist.
“The two institutions will co-exist. HSRA will be under the Ministry of Railways to form standards on ticketing, tracks, rolling stock, while HSRC will be under Rail Vikas Nigam Ltd and will be an institution that will do ground level work,” said Railway Board Chairman Arunendra Kumar. Kumar also added that HSRA is a medium to set technology standard, “but we need not wait for HSRA, as we have Railway Design and Standards Organisation (RDSO), a body which sets such standards.”
However, an official press release of Railway Ministry stated that HSRC (and not HSRA) would undertake project activities such as preparation of project related studies and technical standards high speed rail corridors.
Kumar avoided a clear reply on which body will come first: HSRA or HSRC, but indications are that HSRC will be operational first.
Safety measures
Meanwhile, Railway Minister Mallikarjun Kharge said that while it is good to have high-speed railway systems, India should not rush into adopting some high speed rail technology just because it is cheap. It is important to be aware of the safety aspect, he said.
“Today, we have started the process. Later on its terms and condition, appointment of members, other things will be decided,” Kharge said.
Indicating that full costs of high speed rail technology may not be clear upfront, he added, “One should not buy horses because horse shoes are freely available. We should not get even if it is available free. Some time they sell it to buyers saying it is cheap. We should think whether it suits or not even if it is free or cheap.”
Incidentally, this is not the first such body announced by the Ministry. Earlier, the Ministry had announced formation of a High Speed Railway Authority to do a similar task. According to Ministry officials, both organisations will co-exist.
“The two institutions will co-exist. HSRA will be under the Ministry of Railways to form standards on ticketing, tracks, rolling stock, while HSRC will be under Rail Vikas Nigam Ltd and will be an institution that will do ground level work,” said Railway Board Chairman Arunendra Kumar. Kumar also added that HSRA is a medium to set technology standard, “but we need not wait for HSRA, as we have Railway Design and Standards Organisation (RDSO), a body which sets such standards.”
However, an official press release of Railway Ministry stated that HSRC (and not HSRA) would undertake project activities such as preparation of project related studies and technical standards high speed rail corridors.
Kumar avoided a clear reply on which body will come first: HSRA or HSRC, but indications are that HSRC will be operational first.
Safety measures
Meanwhile, Railway Minister Mallikarjun Kharge said that while it is good to have high-speed railway systems, India should not rush into adopting some high speed rail technology just because it is cheap. It is important to be aware of the safety aspect, he said.
“Today, we have started the process. Later on its terms and condition, appointment of members, other things will be decided,” Kharge said.
Indicating that full costs of high speed rail technology may not be clear upfront, he added, “One should not buy horses because horse shoes are freely available. We should not get even if it is available free. Some time they sell it to buyers saying it is cheap. We should think whether it suits or not even if it is free or cheap.”
Scania sets up assembly plant in India
New Delhi: Sweden's Scania Commercial Vehicles has set up an assembly plant in India to manufacture about 2,500 heavy haulage trucks besides 1,000 inter-city buses and coaches annually at a factory near Bangalore. Currently the localisation is 18% for trucks and 100% for bus bodies, the company said, adding that initial investments will be Rs 250 crore.
The facility will serve as the company's head office and centre for all commercial operations . The operations will consist of final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse.
The facility will serve as the company's head office and centre for all commercial operations . The operations will consist of final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse.
McNally Bharat Africa unit wins Rs 229-cr order
Kolkata: McNally Bharat Engineering Co Ltd has said its South African subsidiary has received an order worth Rs 229 crore to set up a fluorspar beneficiation plant for miner Sephaku Fluoride Ltd in that country.
McNally Bharat Engineering (SA) Proprietary Ltd will have to execute the project in 21 months.
Fluorspar is a basic raw material in the chemical, metallurgical, and ceramic industries and beneficiation refers to crushing and separating ore into valuable substances or waste.
McNally Bharat had won a related order earlier this month from the same miner for supplying a 0.6-million-tonne fluorspar concentrate plant worth Rs 280.7 crore.
Sephaku Fluoride is a subsidiary of the Johannesburg Stock Exchange-listed Sephaku Holdings Ltd.
Both plants are for a fluorspar mining project of Sephaku, located in the Gauteng Province of South Africa.
McNally Bharat will have to set up the concentrate plant at the mine site in 15 months.
For the BM Khaitan Group engineering company, these two orders are the biggest value export packages
McNally Bharat Engineering (SA) Proprietary Ltd will have to execute the project in 21 months.
Fluorspar is a basic raw material in the chemical, metallurgical, and ceramic industries and beneficiation refers to crushing and separating ore into valuable substances or waste.
McNally Bharat had won a related order earlier this month from the same miner for supplying a 0.6-million-tonne fluorspar concentrate plant worth Rs 280.7 crore.
Sephaku Fluoride is a subsidiary of the Johannesburg Stock Exchange-listed Sephaku Holdings Ltd.
Both plants are for a fluorspar mining project of Sephaku, located in the Gauteng Province of South Africa.
McNally Bharat will have to set up the concentrate plant at the mine site in 15 months.
For the BM Khaitan Group engineering company, these two orders are the biggest value export packages
Vodafone to invest Rs 10,141 cr to raise stake in Indian arm to 100%
New Delhi: British telecom major Vodafone Plc on Tuesday sought the Foreign Investment Promotion Board’s (FIPB’s) approval to bring in Rs 10,141 crore to raise its 64 per cent equity stake in Vodafone India to 100 per cent.
According to its application, Vodafone India has been valued at Rs 28,469.9 crore, compared with Rs 54,672.72 crore in February last year, when Ajay Piramal-controlled Piramal Enterprises had paid Rs 3,007 crore for a 5.5 per cent stake in the company. So, if the existing stakeholders — Piramal Enterprises, Max Group’s Analjit Singh, IDFC and other independent investors — exit at the current valuation, they get 47.9 per cent less than what they would have got in February 2012.
When Piramal Enterprises had bought its second tranche of 5.5 per cent stake in Vodafone India, it had said it expected to get 17-20 per cent return on its investment. Apart from Piramal, Analjit Singh holds 6.2 per cent in the company while IDFC and other individual investors own the remaining 18.8 per cent.
Vodafone’s application to buy out its Indian subsidiary’ partners has come within two months of the government allowing 100 per cent foreign ownership in an Indian telecom company. It is the second foreign telco seeking permission to do so, after Singapore’s SingTel recently received FIPB’s approval to buy Bharti Airtel’s 9.9 per cent stake in a joint venture for international long distance calls.
Earlier, in its 2012 annual report, Vodafone Plc had said it would pay Piramal Enterprises between Rs 7,000 crore and Rs 8,300 crore for its 11 per cent stake if the latter was not given an exit through an initial public offering between August 18, 2013, and February 8, 2014, or if Piramal chose not to participate in an exit through IPO.
According to the annual report, the company had benchmarked the valuation of its Indian entity between Rs 63,636 crore and Rs 75,454 crore. Compared to this valuation, the current value is 55-62 per cent lower.
“The value Vodafone has shown today is not justified. It could have been based on the company’s individual agreements with the investors at the time of their investments. Also, the previous valuations could have included the expected return from the 3G business, which did not actually come,” said a partner with a Gurgaon-headquartered management consulting firm. “How can Vodafone be valued at this price when Idea Cellular is valued at Rs 10 billion (about Rs 61,455 crore at Tuesday’s conversion rate),” he asked.
Industry experts attribute the erosion in valuation to Vodafone’s low 3G subscriber base. According to PhilipCapital India, in 2012-13, Vodafone India was fourth among operators in 3G user base (with 3.3 million users), while Bharti Airtel had 6.4 million and Reliance Communications (RCom) 7.2 million 3G users.
Prashant Singhal, telecom expert at Ernst & Young said: “This (Vodafone’s proposal) will improve the market sentiment in general — not for its valuation, but due to foreign investments coming in the sector.”
Confirming the move, a spokesperson for Vodafone Plc said: “We have always said we would like to increase our holding in the business and this further investment demonstrates Vodafone’s long-term commitment to India. The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore.”
When contacted, Ajay Piramal said: “I am confirming that we are getting our returns, but I will not be able to share any more information than that.” He refused to comment more on the issue.
Some analysts say the valuations are very conservative and hint at transfer-pricing issues. “The valuation is, in fact, much lower than conservative estimates. This low valuation might open a Pandora’s box, as it is too good to be true,” said Alok Shende, principal consultant and co-founder, Ascentius Consulting.
But Supreme Court advocate and tax expert H P Ranina says: “I don’t think there will be an issue with this, as they are not related parties and there is no associated person. According to the income-tax laws, if there is no associated person, transfer-pricing rules do not apply, he adds.
Kunal Bajaj, an independent analyst, says: “Vodafone is a private company and the owner of the shares can sell it at a valuation it wants.”
The British telco also announced that it would consider providing additional funding to Vodafone India by subscribing to equity shares of the Indian entity, after it had got 100 per cent equity control. “Looking ahead, Vodafone will continue to invest in India to bring the benefits of mobile communications and financial inclusion to more people across the country,” the spokesperson said, declining to give further details.
According to its application, Vodafone India has been valued at Rs 28,469.9 crore, compared with Rs 54,672.72 crore in February last year, when Ajay Piramal-controlled Piramal Enterprises had paid Rs 3,007 crore for a 5.5 per cent stake in the company. So, if the existing stakeholders — Piramal Enterprises, Max Group’s Analjit Singh, IDFC and other independent investors — exit at the current valuation, they get 47.9 per cent less than what they would have got in February 2012.
When Piramal Enterprises had bought its second tranche of 5.5 per cent stake in Vodafone India, it had said it expected to get 17-20 per cent return on its investment. Apart from Piramal, Analjit Singh holds 6.2 per cent in the company while IDFC and other individual investors own the remaining 18.8 per cent.
Vodafone’s application to buy out its Indian subsidiary’ partners has come within two months of the government allowing 100 per cent foreign ownership in an Indian telecom company. It is the second foreign telco seeking permission to do so, after Singapore’s SingTel recently received FIPB’s approval to buy Bharti Airtel’s 9.9 per cent stake in a joint venture for international long distance calls.
Earlier, in its 2012 annual report, Vodafone Plc had said it would pay Piramal Enterprises between Rs 7,000 crore and Rs 8,300 crore for its 11 per cent stake if the latter was not given an exit through an initial public offering between August 18, 2013, and February 8, 2014, or if Piramal chose not to participate in an exit through IPO.
According to the annual report, the company had benchmarked the valuation of its Indian entity between Rs 63,636 crore and Rs 75,454 crore. Compared to this valuation, the current value is 55-62 per cent lower.
“The value Vodafone has shown today is not justified. It could have been based on the company’s individual agreements with the investors at the time of their investments. Also, the previous valuations could have included the expected return from the 3G business, which did not actually come,” said a partner with a Gurgaon-headquartered management consulting firm. “How can Vodafone be valued at this price when Idea Cellular is valued at Rs 10 billion (about Rs 61,455 crore at Tuesday’s conversion rate),” he asked.
Industry experts attribute the erosion in valuation to Vodafone’s low 3G subscriber base. According to PhilipCapital India, in 2012-13, Vodafone India was fourth among operators in 3G user base (with 3.3 million users), while Bharti Airtel had 6.4 million and Reliance Communications (RCom) 7.2 million 3G users.
Prashant Singhal, telecom expert at Ernst & Young said: “This (Vodafone’s proposal) will improve the market sentiment in general — not for its valuation, but due to foreign investments coming in the sector.”
Confirming the move, a spokesperson for Vodafone Plc said: “We have always said we would like to increase our holding in the business and this further investment demonstrates Vodafone’s long-term commitment to India. The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore.”
When contacted, Ajay Piramal said: “I am confirming that we are getting our returns, but I will not be able to share any more information than that.” He refused to comment more on the issue.
Some analysts say the valuations are very conservative and hint at transfer-pricing issues. “The valuation is, in fact, much lower than conservative estimates. This low valuation might open a Pandora’s box, as it is too good to be true,” said Alok Shende, principal consultant and co-founder, Ascentius Consulting.
But Supreme Court advocate and tax expert H P Ranina says: “I don’t think there will be an issue with this, as they are not related parties and there is no associated person. According to the income-tax laws, if there is no associated person, transfer-pricing rules do not apply, he adds.
Kunal Bajaj, an independent analyst, says: “Vodafone is a private company and the owner of the shares can sell it at a valuation it wants.”
The British telco also announced that it would consider providing additional funding to Vodafone India by subscribing to equity shares of the Indian entity, after it had got 100 per cent equity control. “Looking ahead, Vodafone will continue to invest in India to bring the benefits of mobile communications and financial inclusion to more people across the country,” the spokesperson said, declining to give further details.
Indian businesses turn to IT to fuel growth: Study
Mumbai: Nearly nine out of every 10 (89 per cent) respondents in India believe that cloud computing or ‘as-a-service’ approach, is relevant to their organisation, according to a study by VMware.
The study ‘VMware Cloud Index’ also states that nearly eight out of every 10 (79 per cent) respondents in India have a cloud-related initiative in place within the organisation, or are planning to implement cloud in the next 12 months.
Indian organisations are turning to IT to help them grow the business in the current economic environment. IT is seen as a change enabler and source of business value for organisations by 85 per cent of the respondents.
In terms of the top business priorities in India over the next 12 months, 87 per cent of IT decision makers said improving the quality and capabilities of their products and 85 per cent said addressing the rising expectations of customers and improving customer satisfaction. The study also shows that the current perception of IT remains positive in India with 63 per cent of respondents noting that the perceived credibility, influence and power of the CIO in their organisation is increasing.
The study ‘VMware Cloud Index’ also states that nearly eight out of every 10 (79 per cent) respondents in India have a cloud-related initiative in place within the organisation, or are planning to implement cloud in the next 12 months.
Indian organisations are turning to IT to help them grow the business in the current economic environment. IT is seen as a change enabler and source of business value for organisations by 85 per cent of the respondents.
In terms of the top business priorities in India over the next 12 months, 87 per cent of IT decision makers said improving the quality and capabilities of their products and 85 per cent said addressing the rising expectations of customers and improving customer satisfaction. The study also shows that the current perception of IT remains positive in India with 63 per cent of respondents noting that the perceived credibility, influence and power of the CIO in their organisation is increasing.
Government approves thirteen proposals of foreign direct investment (FDI) amounting to about Rs 1258.53 crore
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on September 19, 2013, Government has approved thirteen (13) proposals of Foreign Direct Investment (FDI) amounting to Rs. 1258.53 crore approximately.
In addition, one proposal viz., M/s Axis Bank Ltd. Ahmedabad, amounting to Rs. 6265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals in the Foreign Investment Promotion Board (FIPB) Meeting held on 19.9.2013.
Following thirteen (13) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s Indian Rotocraft Pvt. Ltd. Amendment in the approved activities of the previous FC approval letter to replace the helicopter model as AW 119Kx, the upgraded model, in place of AW 119Ke, the discontinued model. Nil
2 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune Induction of foreign equity in defence sector. 37.44 (US $ 6 million)
3 M/s Camson Bio Technologies Ltd., Karnataka Issue of warrants to a foreign collaborator in the business of agricultural biotechnology. 32.18
4 M/s SD Bio Standard Dignostics Ltd Infusion of additional FDI in an existing foreign owned pharma company. 27.5
5 M/s Shantha Biotechnics Pvt. Ltd. An existing foreign investor in a brownfield pharma company to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment. 755.00
6 M/s Empays Payment System India Pvt. Ltd., Mumbai To set-up a Multi- Bank Payment System using the Instant Mobile Transfer System (IMT). 27.50
7 M/s Equitas Holdings Pvt. Ltd. A holding-cum-investment company in microfinance sector to increase FDI by issuance of equity shares and new foreign investors. 222.80
8 M/s Jaguar-Max Security Solutions Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of Private Security Services company. 0.11
9 M/s Stork Titanium Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of manufacturing, trading and dealing in titanium products. 156.00 (US $ 25 Million)
10 M/s Styrolution South East Asia Pte. Ltd., Singapore NR to NR transfer of shares within a group company by way of a block deal on the special trading window of BSE Ltd., /NSE Limited. Nil
11 M/s HCL Technologies Ltd., New Delhi Induction of direct foreign investment in its own total paid-up equity share capital and consequent indirect foreign investment in its wholly owned subsidiary. Nil
12 M/s Cable & Wireless Pvt. Ltd. Overseas group restructuring in telecom Sector Company without change in approved FDI/cap/investor. Nil
13 M/s Multi Screen Media Pvt. Ltd. To increase the foreign equity participation for production of television programmes in Indian and downlinking certain TV channels. Nil
The following eight (8) proposals have been recommended to be deferred:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s SasMos Het Technologies Ltd., Bangalore Post facto approval to undertake manufacturing of electronic warfare subsystems, parts and accessories for airborne ground and naval application etc.
2 M/s Jubilant Aeronatics Pvt. Ltd. Amendment in the approved activities of the approval letter in defence sector.
3 M/s Kinedex Healthcare Pvt. Ltd., Jaipur Post facto approval for induction of foreign equity in the existing Indian pharma company.
4 M/s Laurus Labs Pvt. Ltd., Hyderabad Downstream investment in an Indian pharmaceutical company by way of subscription to fresh allotment of equity shares.
5 M/s Soma Tollways Pvt. Ltd. Post facto approval for increase in foreign equity in an investing company.
6 M/s M.D. Shajahan Bablu, Bangladesh Bangladesh nationals to incorporate a company in India with 100% FDI to engage in trading of Raw Jute and Jute Products and Agro based products.
7 M/s Green Destinations Holdings, Mauritius NR to NR transfer of shares before the expiry of lock-in period.
8 M/s Monsoon Capital LLC, USA To make FDI investments directly or indirectly in an Indian Trust.
The following two (2) proposals have been recommended for rejection:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Sundaram Ramaswamy, Gurgaon Conversion of an existing Indian Company into a LLP and additional FDI infusion.
2 M/s SQS India Infosystems Pvt. Ltd., Pune Post-facto approval for swap of shares to carry out the business of Software Testing Services.
The following one (1) proposals have been advised to access automatic route.
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Octania Aerostructure Group Pvt. Ltd., New Delhi To issue equity shares to a foreign investor in lieu of technology transfer/knowhow to set up an aerospace machining and treatments company.
The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Advanta Pvt. Ltd. Post-facto approval for induction of foreign investment into the company to carry out the business of Research, Production and marketing of hybrid seeds.
The following one (1) proposal has been recommended to advise the applicant that the proposal is not within the purview of FIPB:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Tamil Nadu Post-facto approval for delay of 6 months and 2 days in receiving part of the consideration for the issue of equity shares in an existing pharma company.
Decisions in the following five (5) proposals have been kept in abeyance
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2 M/s Acebright (India) Pharma Pvt. Ltd., Karnataka A foreign owned Indian pharma company to receive additional foreign investment by way of fresh issue and transfer. Post-facto approval is also sought for an earlier transfer.
3 M/s Manipal Technologies Ltd., Karnataka Induction of foreign investment in order to invest in the subsidiary to enter into cards payment system management and processing services for all kinds of alternate delivery channels including ATM.
4 M/s AU Housing Finance Limited, Jaipur An Indian Housing Finance Company proposes to increase direct and indirect foreign investment upto 95%, without meeting the minimum capitalization norm of USD 50 million.
5 M/s Aerrianta International CPT, Ireland To set up a 50:50 JV company to engage in running duty free shops at Mumbai airport.
The following one (1) proposal has been recommended for the consideration of CCEA, as the investment involved in the proposal is above Rs. 1200 crore.
1 M/s Axis Bank Limited, Ahmedabad A private bank proposes to increase the foreign equity from the existing 49% to 62%. 6265.76
In addition, one proposal viz., M/s Axis Bank Ltd. Ahmedabad, amounting to Rs. 6265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals in the Foreign Investment Promotion Board (FIPB) Meeting held on 19.9.2013.
Following thirteen (13) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s Indian Rotocraft Pvt. Ltd. Amendment in the approved activities of the previous FC approval letter to replace the helicopter model as AW 119Kx, the upgraded model, in place of AW 119Ke, the discontinued model. Nil
2 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune Induction of foreign equity in defence sector. 37.44 (US $ 6 million)
3 M/s Camson Bio Technologies Ltd., Karnataka Issue of warrants to a foreign collaborator in the business of agricultural biotechnology. 32.18
4 M/s SD Bio Standard Dignostics Ltd Infusion of additional FDI in an existing foreign owned pharma company. 27.5
5 M/s Shantha Biotechnics Pvt. Ltd. An existing foreign investor in a brownfield pharma company to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment. 755.00
6 M/s Empays Payment System India Pvt. Ltd., Mumbai To set-up a Multi- Bank Payment System using the Instant Mobile Transfer System (IMT). 27.50
7 M/s Equitas Holdings Pvt. Ltd. A holding-cum-investment company in microfinance sector to increase FDI by issuance of equity shares and new foreign investors. 222.80
8 M/s Jaguar-Max Security Solutions Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of Private Security Services company. 0.11
9 M/s Stork Titanium Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of manufacturing, trading and dealing in titanium products. 156.00 (US $ 25 Million)
10 M/s Styrolution South East Asia Pte. Ltd., Singapore NR to NR transfer of shares within a group company by way of a block deal on the special trading window of BSE Ltd., /NSE Limited. Nil
11 M/s HCL Technologies Ltd., New Delhi Induction of direct foreign investment in its own total paid-up equity share capital and consequent indirect foreign investment in its wholly owned subsidiary. Nil
12 M/s Cable & Wireless Pvt. Ltd. Overseas group restructuring in telecom Sector Company without change in approved FDI/cap/investor. Nil
13 M/s Multi Screen Media Pvt. Ltd. To increase the foreign equity participation for production of television programmes in Indian and downlinking certain TV channels. Nil
The following eight (8) proposals have been recommended to be deferred:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s SasMos Het Technologies Ltd., Bangalore Post facto approval to undertake manufacturing of electronic warfare subsystems, parts and accessories for airborne ground and naval application etc.
2 M/s Jubilant Aeronatics Pvt. Ltd. Amendment in the approved activities of the approval letter in defence sector.
3 M/s Kinedex Healthcare Pvt. Ltd., Jaipur Post facto approval for induction of foreign equity in the existing Indian pharma company.
4 M/s Laurus Labs Pvt. Ltd., Hyderabad Downstream investment in an Indian pharmaceutical company by way of subscription to fresh allotment of equity shares.
5 M/s Soma Tollways Pvt. Ltd. Post facto approval for increase in foreign equity in an investing company.
6 M/s M.D. Shajahan Bablu, Bangladesh Bangladesh nationals to incorporate a company in India with 100% FDI to engage in trading of Raw Jute and Jute Products and Agro based products.
7 M/s Green Destinations Holdings, Mauritius NR to NR transfer of shares before the expiry of lock-in period.
8 M/s Monsoon Capital LLC, USA To make FDI investments directly or indirectly in an Indian Trust.
The following two (2) proposals have been recommended for rejection:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Sundaram Ramaswamy, Gurgaon Conversion of an existing Indian Company into a LLP and additional FDI infusion.
2 M/s SQS India Infosystems Pvt. Ltd., Pune Post-facto approval for swap of shares to carry out the business of Software Testing Services.
The following one (1) proposals have been advised to access automatic route.
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Octania Aerostructure Group Pvt. Ltd., New Delhi To issue equity shares to a foreign investor in lieu of technology transfer/knowhow to set up an aerospace machining and treatments company.
The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Advanta Pvt. Ltd. Post-facto approval for induction of foreign investment into the company to carry out the business of Research, Production and marketing of hybrid seeds.
The following one (1) proposal has been recommended to advise the applicant that the proposal is not within the purview of FIPB:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Tamil Nadu Post-facto approval for delay of 6 months and 2 days in receiving part of the consideration for the issue of equity shares in an existing pharma company.
Decisions in the following five (5) proposals have been kept in abeyance
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2 M/s Acebright (India) Pharma Pvt. Ltd., Karnataka A foreign owned Indian pharma company to receive additional foreign investment by way of fresh issue and transfer. Post-facto approval is also sought for an earlier transfer.
3 M/s Manipal Technologies Ltd., Karnataka Induction of foreign investment in order to invest in the subsidiary to enter into cards payment system management and processing services for all kinds of alternate delivery channels including ATM.
4 M/s AU Housing Finance Limited, Jaipur An Indian Housing Finance Company proposes to increase direct and indirect foreign investment upto 95%, without meeting the minimum capitalization norm of USD 50 million.
5 M/s Aerrianta International CPT, Ireland To set up a 50:50 JV company to engage in running duty free shops at Mumbai airport.
The following one (1) proposal has been recommended for the consideration of CCEA, as the investment involved in the proposal is above Rs. 1200 crore.
1 M/s Axis Bank Limited, Ahmedabad A private bank proposes to increase the foreign equity from the existing 49% to 62%. 6265.76
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