The Finance Ministry approved 18 FDI proposals, including that of Dish TV and MCX, envisaging foreign investment of Rs 2,126 crore, while referring the application of Unitech Wireless to the Cabinet. The proposals were cleared following recommendations of Foreign Investment Promotion Board (FIPB).
However, decision on 16 proposals including that of Religare Capital Markets and Cordia International Corp, USA, was deferred and 11 were rejected, the Finance Ministry said. The request of "Unitech Wireless (TN), amounting to Rs 8,250 crore, has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA)," the statement said. The company is seeking foreign investment to promote its telecom business including unified access services. FDI proposals envisaging investment of over Rs 1,200 crore and more are referred to CCEA for clearance.
It also said that decision on Vodafone-Essar's request of transfer of shares from resident to non-resident to carry out the activities relating to telecommunication could not be taken as more deliberations were needed. "(Vodafone Essar's Rs 2,835 crore) proposal has been recommended for the consideration...after the receipt of inputs from concerned departments," it added. The government cleared Dish TV India's Rs 980 crore proposal to raise foreign equity to produce telecom equipment and marketing of mobile satellite communications.
The statement further said MCX's (Multi Commodity Exchange of India) request for sale of equity shares through an Initial Public Offering (IPO) to Indians and Sebi registered FIIs has also been cleared. The proposal of Mauritius-based Ventureast Life Fund III LLC seeking induction of foreign equity worth Rs 950 crore in a trust has also been cleared.