Govt okays KPCL's Rs 957-cr FDI proposal

The government today approved the proposal by Hyderabad-based Krishnapatnam Port Company to bring in FDI amounting Rs 957 crore.

The proposal was approved by the Cabinet Committee on Economic Affairs at a meeting held here yesterday, the company's official spokesperson said, adding it was subject to the conditions recommended by the Foreign Investment Promotion Board.

KPCL would need to get approved its previous foreign investment from Hitech Infra amounting to Rs 141.62 crore and another Rs 11.92 crore from three other investment firms — Navaneeta Investments, Chinta Investments and CVR Investments.

Besides, KPCL would have to make downstream investments in the companies and/or to establish subsidiaries, the official said.

Also, KPCL would let proposed foreign investor — Strategic Port Investments KPC — to subscribe to 69.78 lakhs equity shares amounting to Rs 103.50 crore and 70 crore compulsorily convertible cumulative participatory preference shares valued at about Rs 700 crore.

The approval would result in FDI amounting to Rs 957 crore in the country, he said.