Govt allows Rakeen Development to invest 1,000 cr

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The government on Friday allowed UAE-based real estate firm Rakeen Development to invest up to 250 million dollars (Rs 1,000 crore) in the infrastructure sector, including integrated townships and SEZs.

The Cabinet Committee on Economic Affairs gave its nod to set up a wholly-owned holding company with foreign equity of up to 100 per cent by Rakeen Development, Al Jazeera Al Hamra and/or its fully-owned subsidiary Rakeen Ltd (Mauritius) to undertake downstream investments in Indian companies engaged in infrastructure and construction development projects.

"FDI amounting to 250 million dollars (about Rs 1,000 crore) will be received in the country," Finance Minister P Chidambaram said.

Chennai-based Rakindo Developers, which will be the holding company for the investment, would invest in several downstream joint ventures, an official release stated.

Rakindo Developer is a joint venture between Rakeen Pvt Ltd, promoted by Government of Ras-Al-Khaimah (UAE) and Dubai-based Trimex group. These downstream joint ventures would be engaged in infrastructure construction development projects, which include integrated township, IT parks, hotels, resorts, hospitals, housing, retail, office and commercial premises, educational institutions and special economic zones across the country.

The CCEA also gave its ex-post-facto approval for redemption of seven per cent non-cumulative shares that was due in 2006-07. It would help in regularisation of redemption of seven per cent non-cumulative preferential shares by NBCC Ltd in the previous fiscal instead of 2006-07.