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Foreign investment panel clears 35 proposals worth Rs 8-bn

The Foreign Investment Promotion Board today cleared 35 proposals involving a foreign direct investment inflow of Rs 8 billion, including Shell India's application to increase activities in India.

Shell was barred from indulging in retail trading and marketing.

McDonald's application to acquire properties for opening retail outlets, Osram's and Elf Lubricants's proposals to convert their respective joint ventures into a wholly owned subsidiaries and Daewoo's plea to test market clocks and stereos for its cars in India, have also been cleared, the FIPB spokesperson said.

However, the board deferred the UDI's proposal for cooling tower by four weeks.

McDonald's has been allowed to acquire properties in Delhi and Bombay for operating outlets, which will be managed by franchisees.

The approval was given with the condition that the properties would be strictly limited to running their operations and the company would not indulge in any real estate activities.

The company has also been barred from selling land in case it plans to wind up the outlet. For the purpose, the company will have to seek prior approval from the FIPB.

The investments required for the purpose have not been specified. McDonalds will now identify the sites.

Shell India has been allowed to expand its activities in the country to include leasing of port facilities, warehousing and storage. The company would be increasing its paid-up capital by Rs 30 million. However, its proposal to indulge in trading and marketing has been rejected by the board.

UNI

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