New Delhi, Feb 22 (IANS) The cabinet Thursday gave its approval to the $500-million foreign direct investment by Indonesia-based Salim Group in West Bengal to fund various development projects in the state.

The Salim Group, a leading business groups in Asia, is investing in a project to develop an integrated township in Kolkata in a joint venture. It will have 40 percent equity in the New Kolkata International Development Private Limited (NKID), said Finance Minister P. Chidambram after a Cabinet Committee on Economic Affairs meeting chaired by Prime Minister Manmohan Singh.

He said the NKID, incorporated in West Bengal, has entered into an agreement with the state government and the West Bengal Industrial Development Corporation Ltd to act as developer for the proposed 'New Kolkata Project'.

The project includes development of integrated infrastructure comprising townships, housing, Special Economic Zones (SEZs), industrial parks and other related infrastructure, Chidambaram said.

The other promoters of the company are Sriputra Group of Indonesia and Non-Resident Indian Prasun Mukherjee.