CCEA to decide on two FDI proposals worth Rs 13,200 crore

Cabinet will take a final call on Rs 13,200-crore FDI proposals of Sistema Shyam TeleServices and IIFL Holdings, which have been referred to it for consideration by Foreign Investment Promotion Board (FIPB).

New Delhi: Cabinet will take a final call on Rs 13,200-crore FDI proposals of v, which have been referred to it for consideration by Foreign Investment Promotion Board (FIPB).

Meanwhile, the Government has cleared 11 FDI proposals worth Rs 1,568 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 1lth September 2015, Government has approved ll proposals of Foreign Direct Investment (FDI) amounting to Rs 1,567.91 crore," the Finance Ministry said today.

In addition, two proposals -- Sistema Shyam TeleServices involving an FDI of Rs 10,000 crore and IIFL Holdings's Rs 3201.5 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 Rs 14,769.41 crore out of which two proposals with a total FDI of Rs 13,201.5 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 Rs 3,000 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 percent to 85.13 percent, directly in Sistema Shyam TeleServices and indirectly in Shyam Internet Services.

The proposal entails an investment worth Rs 10,000 crore of which Rs 9,433.5 crore has already been brought in.

IIFL Holdings, an NBFC, is seeking approval for increasing the foreign equity from 52.29 percent to 100 percent by way of issuing shares to FIIs.

The estimated investment is Rs 3,201.5 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.