BP Plc is making one of the biggest foreign direct investments 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 Monday.
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.