FIPB clears over Rs 13,000 crore FDI proposals; hikes foreign investment limit in Axis Bank

Government panel FIPB on Friday cleared Rs 13,030 crore worth of foreign direct investment (FDI) proposals, including that of hiking foreign investment limit in Axis Bank.

"FDI proposals for more than Rs 13,000 crore recommended for approval. The inflow of investments continues," Economic Affairs Secretary Shaktikanta Das said.

The Foreign Investment Promotion Board (FIPB) in its meeting on Friday cleared 5 out of 14 proposal, a finance ministry official said.

The proposal of Axis Bank was to hike foreign shareholding limit from 62% at present to 74%. The proposal entails foreign investment worth Rs 12,900 crore.

At present, private banks have a total foreign limit of 74%, of which foreign institutional investor (FII) limit is 49%.

The other proposals which were cleared include that of pharma firm Wockhardt and Aurobindo.

Inter-ministerial panel FIPB can clear proposals worth up to Rs 5,000 crore. The ones above that amount go to the Cabinet Committee on Economic Affairs (CCEA).

Foreign direct investment (FDI) into the country increased by 40% to $29.44 billion during April- December of 2015-16. The foreign investment inflows were at $21.04 billion in the same period of previous fiscal.