The Centre on Wednesday said it has approved 12 foreign direct investment (FDI) proposals, including that of Ratnakar Bank, totalling over R802 crore.
The Foreign Investment Promotion Board (FIPB) headed by economic affairs secretary Arvind Mayaram, however, rejected Mahindra and Mahindra's proposal to form a defence joint venture with Israel's Rafael Advanced Defence System.
"Based on the recommendations of FIPB in its meeting held on November 20, the government has approved 12 proposals of foreign direct investment amounting to R802.07 crore approximately," the finance ministry said in a statement.
In addition, the proposal of Swedish furniture major Ikea has been recommended for consideration of Cabinet Committee on Economic Affairs, it said. Even after FIPB clearance, FDI proposals of over R1,200 crore have to be approved by the CCEA.
Ingka Holding Overseas has been given permission to set up a wholly owned subsidiary to undertake single brand retailing of Ikea products.
As per the statement, Ratnakar Bank's proposal to increase foreign equity in the bank from 43 per cent to 55 per cent has been approved. The move is likely to bring in R300 crore worth of FDI.
Taqa Jyoti Energy Ventures has also got the government's approval to bring in foreign investment of R252 crore.
Other major approved proposals include that of Hyderabad based Mylan Laboratories to acquire an existing pharmaceutical manufacturing facility and of OCS Group Singapore Pte Ltd for acquisition of equity shares of an India company engaged in business of detective and protective services.
Mahindra and Mahindra Limited had sought FIPB's nod to to set up a new joint venture with Rafael Advanced Defence System for production and development of naval defence system and other Products.
The ministry said along with M&M, FDI proposals of Coimbatore based Ampo Valves India and Mumbai based Berggruen Real Estates too have been rejected.
Meanwhile, MCX's application for post facto approval for FDI received before issuance of DIPP's Press Note 2 of 2008 on guidelines for foreign investment in commodity exchanges was withdrawn from the FIPB's agenda, the ministry added.
Also, decision on nine FDI proposals was deferred in the November 20 meeting of the FIPB.