THE government has cleared 16 foreign direct investment proposals worth Rs 892 crore, most of which will be for a hydro power project in Sikkim. The government, however, revoked all foreign collaboration approvals for ByCell Telecom on concerns over the Switzerland-registered company’s funding sources. ByCell sought to obtain telecom licence to start mobile services. The proposal involved an investment of over Rs 2,500 crore in five circles across 13 states. The decision to revoke foreign collaboration approvals for the company was taken on the recommendations of the Foreign Investment Promotion Board (FIPB) as the home ministry had raised objections regarding the original sources and channel of flow of funds.
On the recommendations of the FIPB, the government also deferred 13 proposals, including that of Vijay Mallya-promoted United Breweries to raise Rs 708 crore through convertible warrants, and rejected two cases. The proposal got deferred in the last meeting of the FIPB as well.
United Breweries proposal was for raising Rs 708 crore by issuing fully convertible equity warrants to FirStart Inc, located in British Virgin Islands.
Among cleared proposals, Teesta Urja will bring in Rs 547.20 crore for developing 1,200-MW hydro power project in Sikkim. The government also allowed IL&FS Trust Company to hold 2.0% stake in Multi Commodity Exchange of India that will bring in Rs 108 crore of FDI.
KVK Energy & Infrastructure Pvt Ltd proposal to raise additional FDIof Rs 116 crore has also been approved. However, it deferred Unitech Wireless’s proposal to hike the foreign stake in the firm up to 74%.
In a stride towards stabilizing and boosting economy the Finance Minister Nirmala Sitharaman introduced a new strategy to refund duties and taxes on exports, simple export credit and extra fund More
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