Govt clears 23 FDI proposals worth Rs 565 cr, defers 13 others

New Delhi, June 9 (PTI) The Indian government has cleared
23 FDI proposals, which will bring Rs 564.80 crore into India,
including Dubai-based Damas' plan for retail trading in
jewellery and Danone's plans to re-enter food products space
after quitting Britannia earlier this year.

A proposal by Damas LLC to set up a joint venture with
Gitanjali Lifestyles for retail trading of jewelleries will
bring in foreign direct investment (FDI) of Rs 180 crore,
while Danone's plans for food products business do not have
any definite FDI content as company for this purpose is yet to
be incorporated.

However, the government, on the basis of recommendation
by the Foreign Investment Promotion Board (FIPB), deferred 13
proposals which include Vijay Mallya-owned United Breweries
plans for raising Rs 708 crore by issuing fully convertible
equity warrants.

The proposals by G4s Corporate Services Ltd and Morgan
Stanley were rejected by the government, an official release
said Tuesday.

The proposed JV between Damas and Gitanjali Lifestyles
will open about 100 stores in three years with an investment
of over Rs 300 crore.

The JV will sell jewellery under the brands of Al Zain,
Aura, Boudoor, Diabla and others.

France-based Danone will now be able to operate in
businesses like biscuits, mineral water, cereals, dairy, baby
food and medical nutrition products.

Danone may go it alone or operate through its existing
or new JVs in these sectors.

Danone had earlier this year sold its entire stake in
Britannia Industries Ltd to the Nusli Wadia Group.

Besides, Lazard Mauritius proposal to invest Rs 125 crore
in the units of private equity fund -- Lazard India Growth
Fund -- was also cleared by the government.

Also, US-based Lazard's proposal to venture into asset
management services for a domestic venture capital fund got
the government's nod.

US-based agri-processing firm Archer Daniels Midland's
(ADM) proposal for setting up an Indian arm was also given a
go ahead by the government.

ADM Interoceanic Ltd, Mauritius, had sought approval for
acquiring the entire shareholding and control of a new company
to be set up in the name of ADM Agro Industries India Pvt Ltd,
which is to act as operating-cum-investing company. PTI IND
AM