Government of India has blocked a proposal by G’Five Telecom to invest in its Chennai-based subsidiary, even as it let in investment from Japanese logistics company Kintetsu World Express and UK-based publisher Bloomsbury.
In February, local logistic comany Gati had formed a joint venture with Kintetsu and said it would transfer its Express Distribution and Supply Chain (EDSC) business to a joint venture — Gati-Kintetsu Express — in which Kintetsu would acquire 30% for nearly Rs 268 crore.
Kintetsu’s approval, on Tuesday, was for an investment of Rs 267.69 crore.
However, another joint venture did not have good news.
Munoth G’ Five Telecom’s proposal to allow foreign investment in itself (presumably from G’Five of China) was rejected by the central government’s foreign investment promotion board.
Munoth G’Five had announced late last year that the 50:50 joint venture between the Munoth group of Chennai and the Chinese company would enter three areas — handsets and devices, value-added-services and MVNO or mobile virtual network operator.
The reason for rejection, or the proposed size of the investment was not disclosed.
In its application for approval, Munoth G’Five had quoted “whole sale distribution of mobile phones, laptops, pads and value added service for mobile phones” as the purpose of the investment.
A proposal by Netmagic Solutions, a managed IT hosting services provider, to raise foreign investment up to 74% of its equity was deferred by the government.
The company, which is currently into datacenter management, hosting and other infrastructure, wanted to become an Internet Service Provider (ISP) with the help of foreign investment.
Investment firm CLSA’s proposal to invest in a business of process outsourcing or BPO business was also deferred.
Another approval that would warm the hearts of book lovers in India is that of Bloomsbury UK’s Rs 9.38 crore investment into India.
The investment is to “carry out the business of publishing/printing of books on fiction and non-fiction, electronic publishing, wholesale & retail trading, periodicals books, academic, research and other journals and directories, etc.,” the company said.