The Cabinet Committee on Economic Affairs (CCEA) has approved foreign direct investment (FDI) proposals worth Rs.6,500 crore of two power sector entities.
The CCEA, which met under the leadership of Prime Minister Manmohan Singh on Tuesday, gave the green signal to Grid Equipment for bringing in FDI to the tune of Rs.4,500 crore.
It also approved Energy Grid Automation Transformers and Switchgears India's proposal for a Rs.2,000-crore FDI.
These proposals are for downstream investments and transfer of the entire equity shares of Grid Equipment and Energy Grid from Areva T&D India and other resident shareholders.
Equity shares of the two entities — Grid Equipment and Energy Grid — would be transferred to Alstom Grid Finance and other foreign collaborators and their nominees, an official release says.
Alstom in India is mainly into power generation equipment while Areva T&D India is a leading transmission and distribution player.