CCEA to decide on two FDI proposals worth Rs13,200 crore
Govt has cleared 11 FDI proposals of Eros, Amar Ujala Publications, O-zone Networks Pvt and BTI Payments
New Delhi: Cabinet will take a final call on Rs13,200-crore foreign direct investment (FDI) proposals of Sistema Shyam TeleServices and IIFL Holdings, which have been referred to it for consideration by Foreign Investment Promotion Board (FIPB).
Meanwhile, the Government has cleared 11 FDI proposals worth Rs1,568 crore, including that of Eros International Media, Amar Ujala Publications, O-zone Networks Pvt and BTI Payments. “Based on the recommendations of FIPB in its meeting held on 11 September 2015, Government has approved ll proposals of Foreign Direct Investment (FDI) amounting to Rs1,567.91 crore," the finance ministry said on Wednesday.
In addition, two proposals -- Sistema Shyam TeleServices involving an FDI of Rs10,000 crore and IIFL Holdings’s Rs3201.5 crore, have also been “recommended for consideration" of the Cabinet Committee on Economic Affairs (CCEA).
“The total FDI inflow in the cases recommended for approval is Rs14,769.41 crore out of which two proposals with a total FDI of Rs13,201.5 crore have been recommended for consideration of the CCEA," the ministry said. The inter-ministerial panel FIPB, headed by economic affairs secretary Shaktikanta Das, can clear FDI proposals up to Rs3,000 crore and beyond that CCEA clearance is needed.
Sistema Shyam has sought an approval for conversion of non-convertible redeemable preference shares to optionally convertible redeemable preference shares and thereafter equity shares thereby increasing the foreign equity from 73.95% to 85.13%, directly in Sistema Shyam TeleServices and indirectly in Shyam Internet Services.
The proposal entails an investment worth Rs10,000 crore of which Rs9,433.5 crore has already been brought in. IIFL Holdings, an NBFC, is seeking approval for increasing the foreign equity from 52.29% to 100% by way of issuing shares to FIIs.
The estimated investment is Rs3,201.5 crore. The FIPB also deferred decision on six proposals, including that of Reliance Globalcom, Bermuda; Aegon Religare Life Insurance Company; and APOLLO Hospitals Enterprise. Four FDI proposals were also rejected by the FIPB.
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