New Delhi, Dec 12: The Foreign Investment Promotion Board (FIPB) cleared the $800-million satellite project of the Ispat group for the second time in a month. The proposal of Ispat Telecom to launch, operate and maintain an Indian-owned satellite for global mobile personal communication system (GMPCS) had come back to the board as "some more technical details" were sought from the company.It is understood that the ministry of defence had raised certain objections about the proposal, which was re-examined by the board and recommended for clearance on Saturday. The Ispat project envisages a foreign equity of 49 per cent by the group's overseas affiliates and associates. The Mittals would hold the remaining 51 per cent stake in the project, which will also be involved with manufacture of telecom equipment.
Earlier, the proposal was cleared by the board on November 14. The project involves a foreign direct investment of around Rs 675 crore. Officials said that there was nothing unusual about a proposal,which has been cleared once, to be re-examined by the FIPB.
The approval of the Ispat project is subject to other conditions like clearance and licence from other ministries. It will also have to be cleared by the Cabinet Committee on Foreign Investment.
Besides Ispat, 25 proposals were also cleared by the board involving Rs 755 crore of foreign direct investment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
