Centre clears 16 FDI plans

The government, however, revoked all foreign collaboration approvals for ByCell Telecom on concerns over the Switzerland registered company’s funding sources.

Defers decision
On the recommendations of the Foreign Investment Promotion Board (FIPB), the government also deferred 13 proposals, including that of Vijay Mallya-promoted United Breweries request to raise Rs 708 crore through convertible warrants, and rejected two cases.

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 two per cent stake in Multi Commodity Exchange of India, that will bring in Rs 108 crore of FDI.

Proposals rejected
The government also gave nod to KVK Energy & Infrastructure Pvt Ltd to raise additional FDI of Rs 116 crore.

However, it deferred Unitech Wireless’s proposal to hike the foreign stake in the firm up to 74 per cent.The government rejected two proposals, including that of Indium IV (Mauritius) Holdings to invest in the units of a fund.

Teesta Urja will issue partly paid-up equity shares and convert some of them to fully paid-up shares, sources said.

Last month, the FIPB had deferred the proposal after the Revenue Department sought more time to examine the sources of funds, they added.

The major partners of Teesta Urja, apart from the Sikkim Government, are recognised entities like PTC India and Asian Genco Private.

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 FIPB as the Home Ministry had raised objections regarding the original sources and channel of flow of funds.

United Breweries proposal was for raising Rs 708 crore by issuing fully convertible equity warrants to FirStart Inc, located in British Virgin Islands.