The Cabinet Committee on Economic
Affairs (CCEA) cleared a $500 million foreign direct investment
proposal (FDI) by Indonesian based Salim and Ciputra Group, who
have live projects going on in Kolkata. The funds are parked for
the development of infrastructure projects, including special
economic zones (SEZs), in Left ruled West Bengal.
CCEA has approved the proposal as it will bring FDI inflows over
Rs. 600 crore, which is certainly a whopping amount in itself.
However, the exact nature of investment largely depends on the
agreement between the investors and the state government, says
P. Chidambaram, Indian finance minister.
The project that has been approved on the Foreign Investment
Promotion Board’s (FIPB) recommendations will also include
an Indian equity partner, with the Salim Group acquiring a stake
of 40% in the joint venture company.
The state government, West Bengal Industrial Development Corporation
Ltd, and New Kolkata have entered into an agreement for the development
of infrastructure projects. They will further include townships,
industrial parks, and special economic zone (SEZs). However, the
project will require following a set of guidelines governing FDI,
says Chidambaram.
Another project proposing $150 million FDI by Mauritius based
South Asia Entertainment Holdings Ltd. (SAHEL) has been approved
by the government.
