New Delhi, June 21: The Foreign Investment Promotion Board (FIPB) has allowed Asea Brown Boveri's wholly-owned subsidiary in the country to retain a 2 per cent spread on investments made in downstream ventures. The finance ministry, which was asked for its comments on the company's proposal in this regard as the costs of the operative subsidiary would increase marginally, left it to the FIPB to take a decision on merit.The FIPB has already cleared the proposal of ABB-ABL Ltd, the wholly-owned Indian subsidiary, to make a cumulative preference share issue of Rs 110 crore to ABB Asea Brown Boveri of Switzerland. ABB Asea Brown Boveri will subscribe to 1.1 crore preference shares having a face value of Rs 100 per share. ABB Holdings (South Asia) Ltd was granted approval by the government in 1995 to set up a wholly-owned subsidiary in India to act as a holding company for ABB Asea Brown Boveri's investments in the country and coordinate management and administration of the proposed investments. The approvedforeign equity is Rs 20 crore.
FIPB has, in the meanwhile, closed the case of GVK Power (Krishnapatnam) Ltd following the government's decision to grant automatic approval to power projects with 100 per cent equity subject to a ceiling of Rs 1,500 crore as foreign direct investment.
A revised proposal of Hindustan Lubricants Co Pvt Ltd seeking trading in blended lubrication oil was also cleared by the Board. The FIPB had rejected the company's proposal in March this year on the grounds that the grades and varieties of lubricants and products had not been clarified in the company's proposal.
The company submitted a fresh application in May giving details of the grades and varieties of different lubrication oils and other products. The company has a 40 per cent foreign equity to be held by a Kuwait company.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
