Decisions on 10 proposals were deferred while on six others rejected.
The government, on Wednesday, announced its approval for eight FDI (foreign direct investment) proposals worth Rs.1,311.54 crore based on the recommendations of the Foreign Investment Promotion Board (FIPB).
Of this, the Norwegian telecom giant Telenor’s proposal to set up a joint venture company accounts for an investment of Rs.1,000 crore to raise its stake in Telewings to 74 per cent from 49 per cent.
In a statement here, the Finance Ministry said that Telenor Mobile Communication AS’ application “to set up a joint venture company in the telecom sector,” envisaging an FDI inflow of Rs.1,000 crore has been cleared by the FIPB.
The Norwegian telecom major had filed an application with the FIPB for hiking its stake in Telewings Communications — its Indian subsidiary — through which it participated in the spectrum auction in November last for fresh purchase of airwaves.
“In accordance with procedure, the Telenor Group has applied for FIPB approvals to allow us to invest further in India and increase our ownership from 49 per cent to 74 per cent in Telewings Communications Services Private Limited,” the company had said.
Operating under the brand name Uninor, Telenor’s India unit has presence in six circles — Maharashtra, Gujarat, Uttar Pradesh East, Uttar Pradesh West, Bihar (including Jharkhand) and Andhra Pradesh. Telenor, however, is in the process of transferring Uninor’s business to Telewings through which it participated in the spectrum auction, and bagged airwaves for Rs.4,018 crore.
Among the FDI applications that have received the government’s nod is that of Mahle Holding India, which proposes to bring in Rs.280 crore through its investment company which already has 100 per cent FDI.
Kolkata-based Srei Infrastructure Finance has been allowed to set up ‘White label ATMs’ while U.K.-based Aveva Solutions has got the go-ahead to set up alimited liability partnership firm for software development entailing a foreign exchange inflow worth Rs.8.39 crore.