The government has cleared 26 proposals that are likely to bring in foreign direct investment of Rs 1,360 crore, but deferred a Jet Airways plan to raise funds and rejected on security grounds a proposal of the Swiss ByCell Telecom to start mobile services in India.
Of the approved proposals, the major chunk of FDI amounting to over Rs 1,000 crore would be coming into the health and power sectors, an official release said today. Delhi-based Capricorn Hospitality Services is likely to bring FDI of Rs 576 crore as overseas equity investment of up to 49 per cent in the company. It plans to make downstream investments either directly or through investment companies.
The other large FDI proposal that has been approved is from Hyderabad-based Indus Renewable Energy India.
Indus plans to make downstream investments in operating and/or operating-cum-investing companies engaged in the hydroelectric power sector with an FDI of Rs 500 crore.
However, the government, on the recommendations of the Foreign Investment Promotion Board, rejected four FDI plans, including an application of Swiss firm ByCell Telecom to start mobile services in India on security grounds.
Lack of clarity on its sources of funding is believed to be the main reason behind the rejection.
The company had earlier got approvals to offer mobile services in five circles –– Assam, Bihar, Orissa, West Bengal and North East.
In May, the FIPB had revoked its foreign collaboration approval to the Swiss company for obtaining telecom licence to start mobile services.
"A decision is required to be taken in the light of the High Court's directions that any representation made by ByCell is to be considered by FIPB in light of Ministry of Home Affairs' objections to security ceredentials of the company," the official statement said.
Further, the government deferred 14 proposals, including that of Jet Airways that wanted to raise USD 400 million (about Rs 2,000 crore) to meet its cash flow requirements.
Jet Airways planned to raise funds by selling equity to foreign institutional investors (FIIs) through Qualified Institutional Placement (QIP) route, the statement said.
Other major approved proposals included applications from Ahmedabad-based Sadbhav Engineering for Rs 125 crore of FDI, US-based RPM International (Rs 57.60 crore), Mumbai-based Dawnay Day AV India Advisors (Rs 30 crore), and Bangalore's Futuristic Diagnostic Imaging Centre (Rs 25.94 crore).