The Indian government on Wednesday said it had approved 12 foreign direct investment (FDI) proposals, including that of Ratnakar Bank, amounting to Rs.802.07 crore based on the recommendations of the Foreign Investment Promotion Board or FIPB, reports PTI.

The FIPB headed by Economic Affairs Secretary Arvind Mayaram, however, rejected Mahindra and Mahindra's proposal to form a defense joint venture with Israel's Rafael Advanced Defence System for production and development of a naval defense system and other products.

Besides, the proposal of Swedish furniture major IKEA has been recommended for consideration of the Cabinet Committee on Economic Affairs, it said. Even after FIPB clearance, FDI proposals of over Rs.1,200 crore have to be approved by the Cabinet Committee on economic Affairs (CCEA).

Permission was given to Ingka Holding Overseas to set up a wholly-owned subsidiary to undertake single brand retailing of IKEA products.

As per the statement, Ratnakar Bank's proposal to increase foreign equity in the bank to 55 percent from 43 percent has been approved. The move will bring in Rs.300 crore worth of FDI.

Taqa Jyoti Energy Ventures has also got the government's nod to bring in foreign investment of Rs.252 crore.

Other major approved proposals include that of the Hyderabad-based Mylan Laboratories to acquire an existing pharmaceutical manufacturing facility and of OCS Group Singapore Pte. Ltd.. for acquisition of equity shares of an India company engaged in the business of detective and protective services.

The Ministry said along with M&M, the FDI proposals of Coimbatore-based Ampo Valves India and Mumbai-based Berggruen Real Estates too have been rejected.

Meanwhile, MCX's application for post facto approval for FDI received before issuance of DIPP's Press Note 2 of 2008 on guidelines for foreign investment in commodity exchanges was withdrawn from the FIPB's agenda, the Ministry said.

Also, a decision on nine FDI proposals was deferred in the November 20 meeting of the FIPB.

RTTNews