Cabinet Committee on Economic Affairs (CCEA) will take call on the Rs 1,705-crore investment proposal related to transfer of HDFC shares to the UK-based joint venture partner Standard Life in HDFC Standard Life Insurance Company.Based on the suggestions of FIPB, the government has recommended the proposal of HDFC Standard Life Insurance Company for the approval of CCEA, which involves Foreign Direct Investment (FDI) of Rs 1,705 crore, the Finance Ministry said in a statement.
HDFC Standard Life Insurance Company has sought approval for transfer of its shares currently held by HDFC to Standard Life (Mauritius Holdings) 2006 Limited.
The move will increase share of Standard Life in the insurance joint venture from 26 per cent to 35 per cent.
Based on the recommendations of the Foreign Investment Promotion Board (FIPB), the government also approved the proposal of Firefly Networks Ltd.
The entity had sought approval of the existing foreign investment and commencement of activities as a ‘Telecom Infrastructure Provider Category’. The proposal does not entail any investment inflow.
The FIPB has also deferred decision on four FDI proposals. These are Quantum Simulators (defence), Sharekhan Limited (NBFC), Tata Sikorsky Aerospace (defence), and Aviva Life Insurance Co India (insurance).
Tata Sikorsky Aerospace has sought permission for transfer of 26 per cent of the shares of Tata Sikorsky Aerospace from United Technologies International Corporation – Asia Private Ltd to Lockheed Martin Global, Inc (USA).
Quantum Simulators has approached FIPB for approval to set up a stimulator manufacturing company in India for various applications including military and commercial uses in technical collaboration with leading US firm Textron with USD 15 billion revenue.
It has a joint venture agreement with an Indian company which would be holding 51 per cent and the balance by Quantum.
Meanwhile, the FIPB has rejected the proposal of Software is Correct Inc. It had sought permission for infusing fresh funds of up to USD 15 million in its wholly-owned Indian subsidiary.