Tuesday, February 22, 2011

Biggest FDI deals in India

BP Plc is making one of the biggest foreign direct investments (FDI) in India, with a $7.2 billion tie-up with Reliance Industries to explore for deepwater oil and gas.

BP will take a 30 percent stake in 23 oil and gas blocks and form a 50:50 joint venture with Reliance for the sourcing and marketing of gas, the companies said on February 21.

The companies said the future performance payments and the combined investment could amount to $20 billion in total.

India, one of the world's fastest growing major economies, needs foreign capital to boost infrastructure and sustain economic growth at its near-double-digit targets. Regulatory uncertainty and bureaucratic hurdles, however, have contributed to a slowdown in inbound investment.

In the fiscal year that ends in March, India is on track to bring in $27.6 billion in FDI inflows, down from $35.6 billion in the previous year, a senior official said on Monday.

Below are some facts about major foreign investments in India:

* India's environment ministry last month approved plans by South Korea's POSCO to build a $12 billion steel mill, a boost for the foreign investment climate in Asia's third-largest economy after several setbacks for big ticket industrial projects.

* Vodafone entered India in 2007, paying $11.1 billion to buy a 67 percent controlling stake in Hutchison Whampoa Ltd's mobile business in India, in which India's Essar Group is a partner. The deal is the largest inbound foreign direct investment to be completed.

* Miner Vedanta Resources' planned deal worth up to $9.6 billion for control of energy firm Cairn India, slowed by disagreement over royalties, will be decided by India's cabinet, which could delay it further.

* Japanese drug maker Daiichi Sankyo paid up to $4.6 billion in 2008 for control of India's Ranbaxy Laboratories Ltd.

* NTT DoCoMo Inc agreed to pay $2.7 billion in 2008 for a 26 percent stake in Indian telecoms firm Tata Teleservices, giving Japan's top mobile operator a foothold in the world's fastest-growing major mobile market.

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