The Hindu Business Line : FIPB defers decision on Dow Jones’ plan for arm to publish WSJ facsimile edition

New Delhi, Nov. 26 Foreign Investment Promotion Board (FIPB) on Wednesday deferred a decision on a proposal by Dow Jones & Company Inc., US to set up a wholly-owned subsidiary to carry out the publishing of facsimile edition of The Wall Street Journal (WSJ).

The proposal by News Corp’s Dow Jones & Company was deferred as some comments from Ministry of Information and Broadcasting are awaited, official sources said without elaborating on the nature of the comments. WSJ currently has a content sharing agreement with Hindustan Times for the financial daily Mint. News Corp Chief, Mr Rupert Murdoch, on his recent visit to India, had reportedly hoped for relaxation in the FDI restrictions for print media, before the company made any investment commitment in the space.

The FIPB on Wednesday also approved 32 FDI proposals worth nearly Rs 846 crore, including application of Reid & Taylor to allot and issue equity shares/warrants, involving an FDI inflow of Rs 108.3 crore.

Other proposals that got the green signal from FIPB include Oriental Structural Engineers’ application entailing transfer of shares to set up a holding company with FDI inflow pegged at Rs 450 crore. A proposal by Television Eighteen India to launch three new regional business news channels also received FIPB nod. The proposal does not involve any fresh FDI inflow.

FIPB has also approved Federal Mogul Corp’s plans to set up a new wholly-owned subsidiary to undertake manufacture, distribution and sale of sealing products and gaskets (FDI inflow of about Rs 75 crore). The proposal attracted Press Note 1 (2005 series). Public sector major Oil India’s proposal was also approved. The proposal involves conversion of operating company into an operating-cum-holding company, and IPO issue.

Three proposals have been rejected by the FIPB during its meeting held on November 18 including that of Nagarjuna Construction Co Ltd.

Other proposals that have been turned down by the Board are Inuit US Holdings, US (to acquire equity share capital through multiple stock market transactions), and Delight Investment Pte Ltd, Singapore (induction of foreign equity in two Indian companies and to convert their status from operating company into an operating-cum-holding company for making further downstream investments).

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