FDI worth Rs 1,287 cr cleared; IKEA's case not taken up

The government today cleared four FDI proposals totalling about Rs 1,287 crore, but Swedish furniture major IKEA's proposal for setting up cafeterias in retail outlets was not taken up for consideration.

The proposal of Ingka Holding Overseas BV, IKEA's parent company, was withdrawn from the agenda of the board's meeting, the Finance Ministry said in a statement.

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IKEA plans to open cafeteria at its proposed retail stores. The FIPB has already permitted Swedish furniture major IKEA to invest Rs 4,200 crore to open single-brand retail business.

"Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on December 31, 2012, the Central Government has approved four proposals of Foreign Direct Investment (FDI) amounting to Rs 1,286.75 crore approximately," the statement said.

Of the four proposals approved, Hospira Healthcare's plan to induct Rs 1,194.75 crore foreign equity to acquire manufacturing facilities in pharmaceuticals sector was the significant one.

The Foreign Investment Promotion Board, headed by Economic Affairs Secretary Arvind Mayaram, also approved Mumbai-based Perrigo API's proposal to induct foreign equity worth Rs 55 crore to carry out manufacturing of pharma inputs.

Besides, Kolkata-based Pran Beverages proposal to increase foreign equity to the tune of Rs 30.25 crore for manufacturing beverages was also cleared by the FIPB. It also approved telecommunications firm InterCall Asia Pacific Holdings' proposal worth Rs 6.75 crore to set up a wholly-owned subsidiary.

The board also deferred two proposals -- Alliance Insurance brokers Ltd and Netherlands-based Aon Holdings BV.