VRL Logistics has got the approval for induction of foreign equity to carry out the business of transportation of goods and passengers and courier services.
The government said it has cleared 16 FDI (foreign direct investment) proposals, including that of VRL Logistics, entailing total investment of about Rs233 crore. However, decision on Mahindra and Mahindra proposal to set up a joint venture for defence manufacturing and 20 other requests has been deferred, the Finance Ministry said in a statement.
“Based on the recommendations of Foreign Investment Promotion Board (FIPB)... the central government has approved sixteen proposals of foreign direct investment amounting to Rs232.67 crore approximately,” the statement said.
VRL Logistics has got the approval for induction of foreign equity to carry out the business of transportation of goods and passengers and courier services. It has also been allowed to bring FDI in aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators.
The Karnataka-based company proposes to bring Rs175 crore worth of FDI. CIIE Initiatives, which plans to bring in Rs40 crore worth FDI, has been allowed to increase foreign investment percentage in the Trust.
Mahindra and Mahindra had sought FIPB's nod to set up a JV company to develop, manufacture and provide service support for radar systems and various kinds of defence electronic systems.
Besides, decision on request of HSBC Insurance Services Holdings Limited, London for infusion of foreign investment into an Indian company has also been deferred. The Indian company does not have any operations and also does not have any downstream investments.
Other applications on which decisions were deferred include that of Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc, UK and Advent Business Credit Development Company, Pune.
Five proposals, including that of Bharti Shipyard to undertake additional activities of Defence Production, have been rejected by the FIPB, headed by secretary of economic affairs R Gopalan.
Next meeting of the FIPB is scheduled for 30 March 2012. India allows FDI in most of the sectors through automatic route, but FIPB's approval is required in certain sensitive sectors, like defence and telecommunications.
Nippon Life will invest an aggregate value of Rs1,450 crore to acquire 26% strategic stake in Reliance Capital Asset Management
Nippon Life Insurance Company signed final agreements with Reliance Capital to acquire 26% stake in Reliance Capital Asset Management (RCAM).
The final agreements were signed by Sam Ghosh, CEO, Reliance Capital and Takeshi Furuichi, senior managing executive officer and chief investment officer of Nippon Life Insurance. The transaction is subject to necessary regulatory approvals.
Nippon Life will invest an aggregate value of Rs1,450 crore ($290 million) to acquire 26% strategic stake in RCAM. The transaction pegs the total valuation of RCAM at approximately Rs5,600 crore ($1.1 billion).
Sam Ghosh said, “We will be filing our application with the regulators for approval and hope to conclude this transaction soon”.
Reliance Capital shares closed at Rs391.55 per share on the Bombay Stock Exchange, 6.27% down from the previous close.
Activists demand revocation of clearance for the project and a stop to all police actions
The arrest of many agitators by the police at Idinthikara, Kudankulam, has been criticised by citizen groups and activists, who have demanded that the crackdown be stopped immediately and work at the site be stopped.
The Jan Sansad, or People’s Parliament, identified the Kudankulam action as a “case of misplaced priorities”. It said in a statement, “We demand both Union and state governments to withdraw all police actions, Tamil Nadu government revoke the clearance and close down the nuclear plant as demanded by the local people.”
“While the prime minister has maintained that the greatest danger to the Indian state is terrorism, there is zero respect for non-violent struggles of people’s movements for people’s livelihood. Governments are highly undemocratic by installing such a highly destructive plant without considering the protest of local people. This action shows the real disaster of denying people’s right over development planning. This is clear violation of the principles of democratic decentralization,” said the Jan Sansad in a resolution adopted on the issue.
The organisation further said, “The Kudankulam nuke plant will definitely affect the lives and livelihoods of the people living in that area. The radioactive particles leaked out will be harmful to the health of people and the environment of the marine system. If any accident, as in the case of Fukushima, happens that will destroy the lives and livelihoods of thousands of people. The cooling water released from the plant will increase the temperature of the seawater and will harm the marine life in the coast, hence the livelihood of the people. In the international context also Nuclear energy is not accepted by scientists and governments. Most of the countries which are depending on nuclear energy had changed their stand because it is highly expensive and risky. Nowhere in the world scientists could find a safe method to process or keep the nuclear wastes including the spent fuel.”
A retired IAS officer commented on the crackdown as ‘shameful’. “It is sad the government uses force to put down citizens who are raising questions that need to be answered. If there are serious environmental and security concerns, they must be answered and till then, the work must be stopped,” he said.
Meanwhile, the agitators at Kudankulam have taken up a fast to protest against the police action and have sought the release of those arrested. SP Udayakumar, convener of the group People's Movement Against Nuclear Energy, said they were all prepared to be arrested.