Govt approves 13 FDI proposals of Rs 477 crore

NEW DELHI: The government on Monday cleared sale of six per cent equity in the National Stock Exchange (NSE) to foreign investors while approving 13 Foreign Direct Investment (FDI) proposals amounting to Rs 477 crore.

Finance minister P Chidambaram, on the basis of recommendations of the Foreign Investment Promotion Board (FIPB), approved these proposals.

Pursuant to government approval, the three Mauritius-based companies -- MS Strategic (Mauritius), Actis Investment Holdings and Citigroup Strategic Holdings --will collectively pick up six per cent equity in NSE from IDBI, State Bank of India, SBI Capital Markets, Bank of Baroda, Canara Bank, Oriental Bank of Commerce and Corporation Bank.

The government also sanctioned fresh investment of Rs 225 crore in construction sector by Sweden-based Quinn Logistics.

The proposal includes incorporation of a holding company to make downstream investment in companies engaged in construction activities.

The government also approved the proposal of Worldcom Communications (name changed to Verizon Communications) to undertake national long distance telephony service and provide ISP services with gateways. The proposal does not involve inflow of fresh foreign investment.

In the media sector, the government cleared the proposal of Times Global Broadcasting to induct Rs 34.35 crore by issuing non-convertible redeemable cumulative preference shares to Reuters Singapore.