Vodafone India's Rs 10,141 crore FDI proposal cleared by Cabinet

Written by fe Bureau | New Delhi | Updated: Feb 7 2014, 04:00am hrs
Vodafone, Vodafone IndiaThe Cabinet cleared UK-based Vodafone's proposal to buy out minority shareholders in its Indian arm for Rs 10,141 cr. Reuters
The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the telecom major Vodafone's Rs 10,141 crore (or $1.6 billion) proposal to buy out minority shareholders in its Indian unit.

This is the single largest foreign investment in the telecom sector. Follwoing the CCEA clearance, Vodafone India will be the country's first telecom player to be fully owned by a foreign company.

On December 30 last year, the FIPB had cleared the proposal of CGP India Investments Ltd -- an indirect subsidiary of the Vodafone Group -- to increase foreign equity in Vodafone India Limited from 64.38% to 100%. The FIPB then recommended it for the consideration of the Cabinet Committee on Economic Affairs (CCEA). The decision was deferred earlier as the Home Ministry had not sent in its comments. The approval would result in foreign investment of Rs 10,141 crore being received in the country, an official release said.

The CCEA also approved the proposal to amend the guidelines for appraisal/approval of projects/schemes eligible for financing under the National Clean Energy Funds. By these amendments, existing appraised and approved schemes / programmes for the new and renewable energy sector found eligible will get financing from the NCEF.

The CCEA also cleared the revised cost estimates for widening of NH-232 from Tanda to Raebareli and from Raebareli to Banda in Uttar Pradesh. The total expenditure on widening of roads will be Rs 1376.29 crore.

Besides, the CCEA approved the extension of the Trauma Care Scheme during the remaining period of the 12th Plan with total expenditure of Rs 899.29 crore. The availability of these dedicated trauma centres with specialised and skilled manpower will help in reducing incidence of deaths and disabilities due to road accidents. The CCEA has approved the establishment of 85 trauma centres in government hospitals on national and state highways, preferably in accident prone areas.

In addition, the CCEA approved the implementation of the High Performance Computing system during the 12th plan period at a cost of Rs.567.16 crore. The establishment of the HPC system will enable simulations for improved weather, climate and ocean forecast and will help in providing reliable weather and climate services to the end users such as farmers and fishermen.

The CCEA also cleared the proposal for continuation of the centrally sponsored scheme for strengthening and upgradation of state government medical colleges for increase in post graduate seats in the country. The continuation of the scheme at a cost of Rs.1350 crore will result in an increase of about 4000 seats.

Besides, the CCEA approved the proposal for the Grant-in-aid scheme for Inter-Sectoral Convergence and Coordination for Promotion and Guidance on Health Research during the 12th Plan period at an estimated cost of Rs 1242 crore covering about 750 projects of different duration and cost. The scheme will have components including research studies with emphasis on public health and translational research projects. The CCEA also cleared the development of the first phase of the second campus of the Chittaranjan National Cancer Institute, Kolkata at an estimated cost of Rs 534 crore.