Centre clears 23 FDI proposals,Star pulls out

The government on Monday cleared 23 FDI proposals worth Rs 2,325.21 crore,but entertainment major Star India withdrew its...

The government on Monday cleared 23 FDI proposals worth Rs 2,325.21 crore,but entertainment major Star India withdrew its Rs 234-crore proposal to raise its effective holding in DTH broadcaster TataSky.

The major chunk of Rs 1,142.21 crore is likely to come into broadband services major Tikona Digital Network from convertible debenture and share sale. The wireless Internet broadband service provider will use this money to participate in the forthcoming WiMax spectrum auction. Kalyani group firm Bharat Forges proposal to raise Rs 576 crore by issuing warrants to overseas investors was also approved by the government on the recommendations of the Foreign Investment Promotion Board.

Medical devices maker Opto Circuits has also got the nod for Rs a 376.27 crore FDI. Significantly,Star India Holding has withdrawn its proposal that would have brought in Rs 324.59 crore. When contacted,Star India refused to comment on its withdrawal. Earlier,the government had deferred Star Indias proposal to up its stake in TataSky in the wake of changes in FDI rules effected last year. Besides,eight proposals,including STel,Essar Capital Holding,Verizon Communications and Etisalat DB Telecom,were deferred and six FDI proposals rejected.

The proposal to increase the FDI in mobile telecom operator STel is scheduled to come up this Friday at the meeting of the FIPB in the finance ministry. STel,which offers mobile telephony in Himachal Pradesh,Bihar and Orissa,has sought FIPB approval for increasing the FDI in the company.