New Delhi, Oct. 28: The Royal Dutch/Shell Group of companies today received government approval to invest Rs 460 crore to set up a wholly-owned subsidiary for marketing of transportation fuels. The location for the subsidiary has not been specified.
The investment in Shell India Private Ltd will be routed through Shell Gas B.V and Petroleum Assurantie Maatschappij B.V, which are wholly owned members of the Royal Dutch/Shell Group of Companies.
Shell, whose main activity pertains to marketing transportation fuels, has been trying to gain a toehold in India.
The Shell proposal was one of 23 foreign direct investment (FDI) proposals worth Rs 492 crore cleared today.
The government has also cleared a Rs 16.25 crore proposal of STAR News Broadcasting Limited (British Virgin Islands) to invest in Media Content & Communication Services (MCCS) India, a Mumbai-based company, for broadcasting of news and current affairs television channel.
STAR News Broadcasting Ltd proposes to buy up to 26 per cent of the equity share capital of MCCS by subscribing to fresh issue of shares.
Finance minister Jaswant Singh approved the 23 proposals recommended by the Foreign Investment Promotion Board (FIPB) at its meeting held on October 17.
The other approvals include a Rs 4.70-crore approval to US based Snap-on Global Holdings to set up a wholly-owned subsidiary in Delhi. The company is into the business of bulk imports with ex-port/ex-bonded warehouse sales, cash & carry wholesale trading.
The proposals also include proposals worth Rs 2.5 crore and Rs 1 crore respectively of two German pharmaceutical companies, Boehringer Ingelheim and Altana Pharma AG, respectively.
For Atlanta Pharma, the investment is to be made to establish a research and development facility at Mumbai to synthesise new compounds. The subsidiary would be set up by way of transfer of shares from existing resident shareholders to foreign investors and by fresh issue of shares to the foreign investor.