Italian auto maker Fiat Auto's plans to double its investment in its Indian unit have been approved by the Indian government, the finance ministry said on November 29. Fiat's proposal was among 17 foreign investment proposals worth 35.36 billion rupees ($791 million) cleared by the government.
The Italian auto major will invest an extra 20 billion rupees in its Indian unit - Fiat India Automobiles Pvt. Ltd - taking its total investment in the company to about 40 billion rupees, the statement said. A group of non-resident Indians and overseas investors have been permitted to invest 10.9 billion rupees in ICICI Venture Funds Management Company Ltd, an unit of ICICI Bank.
ICICI Ventures will use the money to set up an "India Advantage Fund" that will invest in shares of Indian companies.
India also approved a proposal by Mauritius-based Essar Communications Ltd to invest 2.3 billion rupees in Mumbai-based Essar Telecom Investment Ltd for a 5.85 percent stake in telecom firm Hutchison Essar Ltd.
Hutchison Telecommunications International Ltd has a majority stake in Hutchison Essar, India's third largest mobile operator.
Korean auto parts maker Mando Corp also got the go-ahead to set up a unit in India with an investment of 1.03 billion rupees and supply electronic power steerings to Hyundai Motor India Ltd and other auto companies.