Government Signs Loan Agreement with Asian Development Bank (ADB) for $273 Million Loan

Government Signs Loan Agreement with Asian Development Bank (ADB) for $273 Million Loan under Rural Connectivity Investment Program for Improving Rural Roads in States of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal

The Asian Development Bank (ADB) and the Government of India signed here a $273 million loan agreement to continue improving rural roads in the States of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. 

The loan represents the third tranche, which is also the last tranche of the $800 million financing facility under the Rural Connectivity Investment Program. The loan will help in constructing over 6,000 kilometers of all-weather rural roads in the aforesaid five States, benefiting over 4200 rural habitations.

Shri S. Selvakumar, Joint Secretary (Bilateral Cooperation), Department of Economic Affairs, Ministry of Finance signed the Loan Agreement on behalf of the Government of India while Ms Teresa Kho, Country Director signed the loan agreement for ADB.

Speaking on the occasion, Shri S. Selvakumar, Joint Secretary (Bilateral Cooperation) said that the program has supported the Government’s objectives under the Pradhan Mantri Gram Sadak Yojana (PMGSY) by providing all-weather road connectivity in selected rural areas in the five states. He said that the enhanced connectivity will improve access of rural communities to markets, district headquarters, health and education facilities, and other centers of economic activity.

Ms Teresa Kho, Country Director,ADB said that it is expected that Project 3 will result in benefits similar to the previous two projects including improving and sustaining the connectivity of selected rural communities in the five States. She said that this loan will be used to make further investments as well as supporting improved road design, road safety and asset management measures, and training, with women actively involved in all aspects.

The Ministry of Rural Development (MORD) is the executing agency of the project at the central level, while the Governments of States of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal have been entrusted with overall implementation at the respective State level. The third tranche is expected to be completed by December, 2017. The implementing agencies at the State level will be the respective State Rural Roads Development Agencies. 

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Government Approves Four (4) Proposals of Foreign Direct Investment (FDI) Amounting to Rs. 384.45 Crore Approximately 

            Based on the recommendations of Foreign Investment Promotion Board(FIPB) in its Meeting held on 19.10.2015, the Government of India has approved four (04) proposals of Foreign Direct Investment (FDI) amounting to Rs. 384.45 crore.

              The following four (04) proposals have been approved:-

No	Item No	Name of the applicant	Gist of the proposal	Sector	FDI
1	1	Eucare Pharmaceuticals Private Limited	Approval has been sought by Eucare Pharmaceuticals Private Limited, for foreign investment upto 33% by HCP Healthcare Asia Pte. Ltd, for an aggregate consideration of `15 crores	Pharma	15 crores
2	2	M/s Hanon Systems, South Korea	M/s Hanon Systems, South Korea, has sought approval for the purchase of 10,000 equity shares held by the shareholders M/s Allied Electronics and Automotive Systems Private Limited, Tamil Nadu	Manufacturing	0.01 crores
3	10	M/s Lupin Limited	Lupin Limited, has sought approval for the following:- I.          Clarification and, if required, approval in respect of ESOPs granted by Lupin prior to 11 June 2015 to the non-resident employees of Lupin or its subsidiaries/joint ventures, as the case may be, which stock options have not been exercised by the employees nor shares otherwise allotted against them by Lupin up to the said date and II.         Issue of fresh ESOPs to non-resident employees of Lupin or its subsidiaries/joint ventures, as the case may be, by the Board of Lupin after 11 June 2015	Pharma	Rs. 331.64 crore which includes Rs. 108.23 crore Pre- June, 2015 ESOPs.
4	11	M/s BF Elbit Advanced Systems Private Limited	BF Elbit Advanced Systems Private Limited has south approved for increasing the foreign shareholding from 26% to 49% by its existing shareholder M/s Elbit Systems Land and C4I Ltd. Israel.	Defence	37.8 crores

Following Five (05) proposals have been deferred:-

No	Item No	Name of the applicant	Gist of the proposal	Sector
1	4	M/s Diarough Far East Holdings Pte Ltd, Singapore	Approval has been sought by M/s Diarough Far East Pte. Ltd., to invest in M/s Dia Rays Manufacturing LLP for 75% of their capital	LLP
2	5	M/s RoltaMeprolightPvt Ltd	Approval has been sought for acquisition of 49% in M/s RoltaMeprolight Pvt. Ltd by M/s Meprolight 1990 Ltd for an aggregate consideration of 126 cr. 51% would be held by M/s Rolta India Limited	Defence
3	8	M/s Quantum Simulators Pvt Ltd	Approval to set up a stimulator Manufacturing Company in India for various applications including military and commercial uses in technical collaboration with leading US Company M/s Textron with US $ 15 Billion revenue. Further  M/s Quantum Simulator has a JV agreement with a Indian company who would be holding 51% and the balance 49% by quantum	Defence
4	12	M/s SeQuent Scientific Limited	M/s SeQuent Scientific Ltd has proposed to acquire the entire shareholding Alivira Animal Health Limited (100%) by buying out the minority shareholding of 99,97,941 shares i.e. 26.70% held by Ascent Fund and Devicam, as a consideration Sequent will issue 35,85,413 equity shares(share swap) on a prefential basis at a price of Rs. 669.10 per equity share.	Pharma
5	14	M/s FireFly Networks Limited	Approval sought for 50% existing foreign investment (indirect) and to permit commencement of activities as a Telecom Infrastructure Provider Category-I (IP1).	Telecom

            The following four (04) proposals have been rejected:

No	Item No	Name of the applicant	Gist of the proposal	Sector
1	3	M/s Barefoot Resorts and Leisure lndiaPvt Ltd	post facto approval of the allotment of 14195 partly paid equity shares of the face value of Rs 100 each issued at a premium of Rs 6900 per share equity share made on 1 October 2009 by the Applicant to its existing NRI Shareholder Fruition Resorts Limited, Mauritius on rights basis	Hospitality
2	6	M/s Franklin Templeton Asset Management (lndia) Pvt Ltd	"Approval has been sought by Franklin Templeton Asset Management (India) Pvt. Ltd, a 100% FOOC for the amendment to the condition in the approval letter dated 10.09.2014 - “The downstream investment of the AIFs would need to be in conformity with the FDI Policy in respect of entry route, caps and conditionalities”.	AIF/VCF
3	7	Jeet Parikh	Approval has been sought for foreign investment by G11 Pty Ltd, Australia as a partner in APT Accounting and Taxation Services LLP, an existing LLP recently incorporated	LLP
4	13	M/s Reliance Globalcom Ltd	Approval sought to purchase M/s GCX India Ltd., an Indian owned and controlled company	Telecom

            One (1) proposal does not lie before FIPB:-

No	Item No	Name of the applicant	Gist of the proposal	Sector
1	9	M/s Alkem Laboratories Limited	Approval to undertake an IPO of its equity shares through an offer for sale of 1,28,53,442 equity shares of face value of ` 2 each by certain existing shareholders of the Company, The proposed foreign equity will be 10.75%	Pharma