FOREIGN INVESTMENT

• Continuous liberalization in FDI policy and simplification of procedures are contributing immensely to attracting increased FDI into India. The fact that the Government is now annually conducting a review of the FDI Policy & Procedures has given an added confidence to the foreign investors that their concerns are addressed on a continuous basis.
  
  
• The Foreign Direct Investment (FDI) equity inflows during 2009-10, in the month of March 2010 were estimated at US$ 1.21 billion.
  
  
• Cumulative amount of FDI inflows from August 1991 to March 2010 was US$ 131.22 billion.
  
  
• The sectors attracting the highest FDI equity inflows during April 2009-March 2010 have been the Services Sector, Computer Software & Hardware, Telecommunications, Housing & Real Estate,Construction Activities, Power, Automobile Industry, Metallurgical Industries, Petroleum & Natural Gas and Chemicals.

• The top investing countries in terms of FDI equity inflows during April-March 2010 have been Mauritius, Singapore, U.S.A.,U.K.,Netherlands,Cyprus,Japan,Germany,U.A.E and France.

Indian Investments Abroad

• Patni Computer Systems, the Mumbai-based IT services provider,signed a definitive agreement to acquire CHCS Services, a wholly-owned subsidiary of Universal American Corp.Patni also signed a multi-million dollar, five-year agreement to provide end-to-end policy administration services to Universal American, a health insurance company in the US. Universal American is an existing client of Patni.The acquisition is expected to allow Patni gain a presence in Pensacola, Florida and establish a new line of business as a Third-Party Administrator (TPA) in the insurance and healthcare sector. This, said a company release, would significantly enhance its existing business process outsourcing (BPO) capabilities to deliver end-to-end platform based solutions and TPA services to insurance providers’ back-office transactions.“This represents the largest win in the company’s history and this strategic acquisition of CHCS Services is a strong validation of Patni’s differentiated micro-vertical strategy. This move takes on dual significance for Patni in terms of growing our global Life and Healthcare Insurance business as well as establishing us as a TPA,” said Jeya Kumar, CEO, Patni.Patni will add to its onshore delivery capability in North America, where it already has centres in Bloomington, Illinois and El Paso, Texas, in addition to its near shore centre in Mexico.
  
  
• Bharti Airtel took a big step towards fulfilling its international ambitions with a deal to acquire most of the African assets of Kuwait’s Zain Telecom. Sunil Bharti Mittal, the founder and CMD of India’s largest mobile phone firm, described the acquisition as a “pioneering step towards South-South co-operation” as he started laying the groundwork for the most important tasks that lie ahead, winning regulatory approvals in 15 countries and replicating Bharti’s successful low-cost model in Africa. The $10.7-billion deal, including $1.7 billion of Zain’s debt, was signed in Amsterdam, the base of Zain’s African unit. With Zain Africa’s 42 million customers, Bharti Airtel will have 179 million subscribers, making it the world’s fifth-largest mobile phone operator.“This is India’s first and truly post-independence multinational. We will demonstrate to the world the business model we have built,” Mr Mittal said.“This is a game-changer for India in Africa,” he added.
  
  
• The Essar Group has acquired a coal mine in Indonesia to fuel its upcoming thermal power projects. Sources said the acquisition,was for about Rs 900 crore.The Aries coal mines in the Kutai region of East Kalimantan has an estimated resource base of 100 million tonnes of thermal coal and mineable reserves of 64 mt, said a statement from the Group, whose annual turnover is $15 billion (Rs 68,700 crore).“The Indonesian mines are an excellent addition to our growing portfolio of coal assets. This acquisition adds another 100 mt to our existing thermal coal resource base of about 275 mt in India,” said Anshuman Ruia, Group Director.He said the acquisition was a major step forward in Essar’s strategy of securing long-term fuel linkages and capturing the complete value chain in all its businesses.