The government today cleared 21 foreign direct investment (FDI) proposals worth Rs 84.90 crore, more than three-quarters of which will come in through the initial offer to be made by the world's largest chemical company BASF. Based on the recommendation of the Foreign Investment Promotion Board (FIPB), the government, however, deferred 14 other proposals including that of Vijay Mallya-run United Breweries to raise Rs 708 crore through issuing convertible warrants. This is the second time in a row that the proposal has been deferred by the government.

Another proposal by venture capital fund India Rizing Fund to reconsider its application to set up a fund for the Indian defence sector in the light of new norms for FDI calculation was also deferred. In addition a total of seven proposals, including those of three telecom majors Bharti Telemedia, Tata Teleservices and NTT Docomo, were rejected by the FIPB.

Germany-based BASF SE now has the government’s go-ahead to make an open offer for acquiring a 20 per cent stake in chemical manufacturer Ciba India, which would bring in Rs 63 crore through an open offer. Another important proposal to get the government’s approval was that of Vodafone Essar to hive off its towers and related infrastructure into a separate arm Ortus Infratel.