Vodafone's Rs. 10,141 crores FDI proposal referred to CCEA: Finance Ministry

PTI : January 13, 2014

The Finance Ministry on Monday said the Rs. 10,141 crores proposal of Vodafone to buy out the minority stake in its Indian arm has been referred to the prime minister-headed Cabinet Committee on Economic Affairs (CCEA) for approval.

It also said the government has approved five proposals of foreign direct investment (FDI) amounting to Rs. 1,133.41 crores.

The proposals, which have been approved, include that of UK-based Tesco Overseas Investments and Singtel Global. The proposals have been cleared on the basis of recommendations of Foreign Investment Promotion Board (FIPB).

"The proposal of (CGP India Investments) has been recommended for the consideration of CCEA, as the investment involved in the proposal is above Rs. 1,200 crores," the Ministry said in a statement.

CGP India Investments, an indirect Mauritian subsidiary of Vodafone International Holdings BV, had approached the FIPB to "to increase foreign equity in Vodafone India Ltd from 64.38 percent to 100 percent in telecom sector".

Tesco Overseas Investments has been given permission to acquire (through purchase and subscription) 50 percent of the equity share capital of Tata Group company Trent for multi- brand retail trading in India through a chain of stores.

The Tesco plans to invest Rs. 682.43 crores (USD 110 million).

The Ministry further said that SingTel Global (India) Pvt Ltd has been permission to increase foreign investment from 74 percent to 100 percent in telecom sector company.

Tikona Digital Networks has got FIPB nod to increase foreign equity upto 72.58 percent by issuing compulsorily convertible debentures (CCDs) and equity shares to the existing non-resident investors on a rights basis. The company proposes to bring in FDI worth Rs. 248 crore.

Pharma company Fresenius Kabi India Private was given permission to to issue shares to its parent company. The proposal envisages investment of Rs. 200 crore.

Meanwhile, the Finance Ministry said that government has deferred decision on proposal of HDFC Bank to increase foreign holding in the bank.

HDFC had sought the FIPB permission to maintain the permissible foreign holding in the bank up to 67.55 percent, out of which the FII sub-limit would be 49 percent and the balance 18.55 percent would be FDI.

Decision on two other proposals have also been deferred.