Ccfi Clears 12 Requests

The cabinet committee of foreign investments yesterday approved a dozen investment proposals including six from the telecom sector and four from the petroleum and fertiliser sector.

The proposals approved include one from Reliance Communications for satellite-based telephony, three from the BPL group and one from Tata Telecom. Petroleum sector clearances involve a foreign investment of $ 765 million.

The approvals include a request from BPL-US West for foreign equity of Rs 735 crores accounting for 49 per cent of the enhanced share capital of Rs 1500 crore. BPL Cellular Holdings Ltd. has been given approval for raising funds through American Depository Receipts for $ 200 million with a green shoe option of 15 per cent.

 

The CCFI also cleared a request for raising foreign equity in a BPL company, The Astra Group from 28.97 per cent to 33.6 per cent, an increase of Rs 10.65 crore.

A request from Tata Communications for restructuring its equity was also accepted. It does not envisige any additional inflow of foreign funds. But the AIG (Mauritius) which holds 10 per cent equity in the company will pass on half of it to Asian Infrastructure Andhra Pradesh ( Mauritius) Inc.

Sterling Cellular Ltd. has been given permission for revision of equity structure and issue of non-convertible redeemable cumulative preference shares. Its foreign equity participation has been raised from Rs 90 crores to Rs 184 crores.

Srinivas Cellcom has been allowed to substitute the original foreign collaborator, M/s Century Telephone Enterprises Inc. USA with its wholly owned subsidiary M/s Cellunet India Ltd, Mauritius

The committee approved the proposal of Gaz De France (GDF) to invest initially up to 50 per cent (amounting to $ 55 million) in the paid-up capital of Petronet LNG Limited

Petronet LNG is setting up LNG importation and transportation projects at Dahej in Gujarat and Kochi in Kerala.

The committee also approved foreign investment proposal by Hardy Oil Limited, UK, in Nagarjuna Hydrocarbons (Internationa) Limited for an LNG project at Kakinada in Andhra Pradesh. Hardy Oil has been allowed to invest up to 30 per cent amounting to $ 40 million for setting up of the terminal.

Tractebel Energy South Asia Pvt Ltd (TESA) has been allowed a foreign investment up to 74 per cent amounting to $ 420 million in collaboration with BHP Petroleum of Australia and Tractebel SA of Belgium to develop a liquid fuel terminal at Kakinada which will be extended to an LNG terminal by the end of the second phase.

CCFI also approved the proposal of BHP Petroleum for 100 per cent foreign direct investment amounting to $ 250 million for setting up a special purpose company, BHP Petroleum (India) Pvt Ltd, which would act as a holding company fore the foreign company and would make investments either by itself or through joint ventures.

Foreign equity participation of Rs 1592 crores in the paid up capital of Rs 1727 crores has been allowed to Mahindra Ford.