Govt clears FDI proposals

The government today approved 22 foreign direct investment (FDI) proposals entailing an inflow of Rs 511.5 crore, including that of World Bank's private sector arm IFC and global private equity player Goldman Sachs.

International Finance Corporation will take up 18% stake in domestic stocks and commodities brokerage firm Angel Infin for Rs 152 crore. US-based Goldman Sachs and Australia's Macquarie will pick 40% stake in PTC India Financial Services, a non-banking financial arm of power trading firm PTC India, for Rs 155.74 crore.

The proposals were cleared by finance minister P Chidambaram on the recommendations of Foreign Investment Promotion Board (FIPB), an official statement said.

"The equity investment will support Angel Infin, based in Mumbai, to expand its operations to tier II and III cities in India and introduce new products," official sources said.

However, a proposal of Flemingo to open duty free shops outside airports and in hotels has been rejected. A proposal of leading retailer Dolce & Gabbana to set up a joint venture with 51% stake to undertake single brand retailing of fashion and lifestyle products has been put on hold.

FIPB has also deferred a decision on the proposal of Russia's Sistema Joint Stock Financial Corp to increase its stake from 10% to 74% in a telecom firm.