FIPB clears 21 FDI projects, rejects Sistema Shyam's proposal

New Delhi: The government cleared 21 foreign investment proposals on Tuesday, but turned down the proposal of Sistema Shyam Teleservices (SSTL) to raise the foreign stakeholding in the company beyond the current 74 per cent.

The Foreign Investment Promotion Board (FIPB), which is headed by finance secretary Arvind Mayaram, had considered 35 proposals. The ones cleared include those of Bharti Shipyard, Verizon Communications, IndusInd Bank and ANZ Capital.

A finance ministry official confirmed that the proposal of SSTL was rejected. “The company is awaiting an official communication from FIPB, only then would it be possible for Sistema Shyam Teleservices to respond on the matter,” a company spokesperson said in an email.

ET had earlier reported that Russian conglomerate Sistema JSFC’s proposal to raise its stake in its Indian unit beyond 74 per cent has hit a hurdle with the telecom department saying that the plan will need Reserve Bank of India approval as it has been structured like an overseas debt deal and not as FDI.

According to a government official, the company has also not specified the extent to which the foreign holding would be raised. Sistema JSFC holds 56.68 per cent in SSTL, the Russian government 17.14 per cent and other foreign entities 0.13 per cent.