CCEA clears Rs 6,500 cr FDI proposals of two power entities

NEW DELHI: The government today approved the proposals of two power sector entities for bringing in foreign direct investment worth Rs 6,500 crore.

The Cabinet Committee on Economic Affairs ( CCEA) gave the green signal to Grid Equipment for bringing in FDI to the tune of Rs 4,500 crore, an official release said.

Energy Grid Automation Transformers and Switchgears India's proposal for Rs 2,000 crore FDI was also approved.

These proposals are for "downstream investment" and transfer of entire equity shares of Grid Equipment and Energy Grid from Areva T&D India Limited 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," the release said.

Alstom in India is mainly into power generation equipment while Areva T&D India is a leading transmission & distribution player.

The global business of Areva T&D were acquired by consortium of Alstom and Schneider Electric in June 2010.

Following the buyout, Alstom Schneider Electric in December last year said they had assumed operational control of AREVA T&D India.