The Foreign Investment Promotion Board (FIPB) has approved 15 foreign direct investment proposals worth Rs 7,262 crore, including FDI plans of foreign insurers Nippon Life Insurance, Tata AIA and Aviva Life, the finance ministry said in a statement on Monday.
Yes Bank’s proposal to hike foreign investment limit to 74 per cent from existing 41.87 per cent without any sub-limits has been referred to the Cabinet Committee on Economic Affairs (CCEA). Yes Bank’s proposal is estimated to result in FDI inflow of Rs 6,885 crore, the ministry said.
“Based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its meeting held on March 7, the government has approved 15 FDI proposals involving Rs 7,261.6 crore and recommended one proposal for approval of CCEA involving FDI of Rs 6,885 crore,” as per the statement. The FIPB deferred 8 FDI proposals and rejected 10.
The proposal of Japanese insurance company Nippon Life to hike stake in Reliance Life Insurance from 26 per cent to 49 per cent involving investment of Rs 2,265 crore was approved by the FIPB. Tata AIA Life Insurance Company’s proposal to increase AIA International’s stake from 26 per cent to 49 per cent for Rs 2,055 crore was also cleared by the board. The FIPB approved Aviva Life Insurance’s Rs 940 crore proposal to hike Aviva International’s stake to 49 per cent, by way of transfer of 23% shareholding currently held by Dabur Investment Corp. The Board also cleared Birla Sun Life Insurance Company’s proposal worth Rs 1,664 crore for hiking Sun Life Financial (India) Insurance Investments Inc’s foreign equity in the company to 49 per cent from 26 per cent, by acquiring the 23 per cent of the shareholding currently held by Aditya Birla Nuvo. The Board approved the proposal of Taurus Ventures for issuance of shares to the shareholders of Max India pursuant to a demerger of Max India Ltd. “FDI inflow continues. Fast clearances make a difference,” Economic Affairs Secretary Shaktikanta Das tweeted on Monday. The FIPB, headed by the Economic Affairs Secretary, is an inter-ministerial panel and can approve foreign investment proposals of up to Rs 5,000 crore. Raheja QBE General Insurance Co’s Rs 102 crore proposal for transfer of 23 per cent shares held by Prism Cement to Hong Kong’s QBE Asia Pacific Holdings and thereby increasing foreign shareholding to 49 per cent also got the nod. The FIPB deferred proposal of Bupa Singapore to increase its investment in Max Bupa Health Insurance from 26 per cent to 49 per cent. ICICI Lombard General Insurance’s proposal to sell 9 per cent of the share capital of the company to FAL Corporation, an indirect wholly owned subsidiary of Fairfax, for an aggregate consideration of Rs 1550 crore was deferred.