FIPB set to take call on ByCell plan on Friday

ByCell Telecommunications, a Switzerland-registered telco promoted by Russian businessmen, will make a representation against revocation of its FIPB approval this Friday in the finance ministry, it is learnt. The Foreign Investment Promotion Board (FIPB) is slated to meet on July 24 to consider fresh applications as well as the proposals deferred over the past few weeks.

The government had recently revoked the FIPB clearance that it had granted to ByCell for an inflow of $500 million (Rs 2,566 crore) over a period of 3-5 years and to offer mobile phone services across five circles. The government concern was over the source of funds.

ByCell CEO Alexandre Louzine had written to the FIPB on May 9 saying the company could change its shareholding pattern “if the FIPB approval granted on February 14, 2008, remains intact”, but the government did not change its decision.

Two other companies are expected to make representation against rejection of their applications by FIPB the coming Friday. They are Rish Pte Ltd and Forum Synergies (India) Fund Managers.

Among the deferred proposals that are likely to be taken up on July 24, are those of Unitech Wireless, United Breweries, Credit Information Bureau, Dish TV, India Rizing Fund, KS Oils, Exensys Software Solutions and BEE Kaydass India.

 While the proposal of United Breweries has been deferred four times, those of Unitech Wireless thrice, India Rizing and Exensys twice, and Bee Kaydass, KS Oils, Credit Information and Dish TV once each.

The new proposals coming to be taken up at Friday’s FIPB meeting include Industria de Diseno Texti (Spain), SMS Siemag Aktiengesellschaft (Germany), EADS Deutchland (Germany) and Larsen & Toubro (L&T), Quattro BPO Solutions, Pridhvi Asset Reconstruction, Sungard Solutions and Asha Micro Credit.

Also on the FIPB list are proposals from Taneja Aerospace, Cholamandalam DBS Finance, Cargil & Financial Services, Synergy Media Entertainment, Tecnotree Convergence and Devas Multimedia.

Meanwhile, applications from Network 18 Media Investments Ltd, Punj Lloyd, Ramboll Singapore and Nova Integrated Systems have been submitted to FIPB in the past one week. Both Ramboll and Punj Lloyd have applied for providing engineering services in the energy sector. In the case of Network 18, the application is for investment advisory, events & sports management. As for Nova Integrated Systems, the application pertains to manufacturing and marketing of defence equipment, arms and armaments, radar apparatus, aircraft, spacecraft and their parts.