Finance ministry backs FDI hike in HDFC Standard Life to 35%

The finance ministry today recommended to the Cabinet Committee on Economic Affairs (CCEA) a proposal for transfer of shares by Housing Development Finance Corporation Limited (HDFC) to Standard Life (Mauritius Holdings) 2006 Limited, thereby increasing foreign shareholding in HDFC Standard Life Insurance (HDFCSLI) from 26 per cent to 35 per cent.

The proposals involves foreign direct investment amounting to Rs1,705 crore in the insurance sector.

The government also granted approval to FireFly Networks Limited's indirect holding of 50 per cent equity investment in telecom infrastructure and commencement of activities as telecom infrastructure provider, which involved no fresh investment.

The finance ministry deferred a decision on four proposals, including one for setting up a stimulator manufacturing company in India for various applications, including military and commercial uses, in technical collaboration with leading US company Textron, with expected revenue of $15 billion.

Quantum Simulator has a joint venture agreement with an Indian company which would be holding 51 per cent and the balance 49 per cent by Quantum

The ministry deferred a proposal for acquisition of up to 100 per cent of the share capital of Sharekhan Limited other than the shares held in Sharekhan Limited by Human Value Developers Private Limited by BNP Paribas SA France and / or one or more of BNPs French subsidiaries as also acquisition of 100 per cent capital of Human Value Developers Private Limited by BNP and/ or one or more of BNPs French subsidiaries.

Approval for Aviva Life Insurance Company India Limited's proposal to increase foreign shareholding from 26 per cent to 49 per cent by Aviva International Holdings Limited, UK by way of transfer of 23 per cent shareholding currently held by Dabur Investment Corp has also been deferred.

Approval for non-resident to non-resident transfer of 26 per cent of shares of Tata Sikorsky Aerospace from United Technologies International Corporation - Asia Private Limited to Lockheed Martin Global, Inc. (USA) has also been deferred.

The finance ministry rejected a proposal by Software is Correct Inc for infusing fresh funds of up to $15 million in its wholly owned Indian subsidiary.

A proposal by P C Ghadiali and Co LLP on behalf of Mazav Management LLC, USA for the acquisition of 24 per cent shareholding in Nexus Flight Operation Services India Pvt Ltd held by Sovika Aviation Services Private Limited did not come up before the FIPB.

SunE Solar BV, a company registered in the Netherlands, to set up a LLP in India along with SunEdison Energy India Private Limited and SunEdison Solar Power India Private Limited, both private limited companies incorporated in India, has been withdrawn.