The Hindu Business Line : Cabinet nod for Newbridge FDI in Shriram Investments

THE Cabinet Committee on Economic Affairs has approved a FIPB-cleared proposal permitting Newbridge India Investments Ltd, Mauritius, and its sister companies to invest in Shriram Investments Ltd, Chennai, which is a non-banking finance company.

"The total inflow of foreign investment as a result of the Mauritius-based company buying into the equity of the Chennai-based company is expected to be about Rs 687-crore," Mr P. Chidambaram, Union Finance Minister, told newspersons here.

The Finance Minister said the Foreign Investment Promotion Board (FIPB) had placed the proposal before the CCEA as the amount of inflow was over Rs 600 crore.

Meanwhile, on the proposal of acquisition of aircraft by Air India Ltd, Mr Chidambaram said the CCEA had given an in-principle approval for the acquisition of aircraft from Boeing.

"The aircraft will be powered by GE and CFM engines. The in-principle approval is for 50 aircraft by Air-India (35 on firm basis and 15 on an optional basis) and 18 aircraft for Air India Charterers Ltd. The price is to be finally negotiated by an empowered group of ministers to be constituted," Mr Chidambaram said.

He also said the delivery of aircraft for Air India Charterers Ltd would be from 2006-07 to 2010-11, i.e. a period of four years. For Air India aircraft, the delivery period would be from 2006-07 to 2012-13.