Cayman Island firm's proposal on airports to net India FDI worth $300 million

New Delhi: Early in the week, the Indian government approved a proposal from a Cayman Islands-based company, Agam SPV Six Ltd, to set up new airports, and upgrade existing ones, in the country with foreign direct investment of up to $300 million. The approval was cleared at a meeting of the Cabinet Committee on Economic Affairs, presided over by prime minister, Manmohan Singh, subject to sectoral regulations as notified by the civil aviation ministry.

''The special purpose vehicle (or the holding arm) should make full disclosures of its source of funds,'' an official statement issued after the meeting said, adding that the project can be taken up either directly or through subsidiaries.

''The approval will result in foreign direct investment amounting to $300 million being received in the country,'' the statement added.

The decision on Agam's proposal comes just a week after the government approved a new airports policy that will now consider proposals for new airports, within a 150 km radius of an existing one, on the merits of each case.