Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

07-December-2011 20:42 IST

The Cabinet Committee on Economic Affairs on the recommendation of FIPB today approved the Proposal of M/s. Energy Grid Automation Transformers and Switchgears India Limited, Haryana for bring in foreign direct investment of Rs.2000 crore (approx).

This proposal is for downstream investment in promoter group companies engaged primarily in the business of electricity transmission and / or electricity distribution related activities and transfer of entire equity shares of M/s. Energy Grid Automation Transformers and Switchgears India Limited from M/s. Areva T&D India Limited and other resident shareholders as a nominee of M/s. Areva T&D India Limited to M/s. Alstom Grid Finance and other foreign collaborators and their nominees.

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SH/SKS

Foreign direct investment approval enabling downstream investment and equity transfer to foreign collaborators under corporate restructuring. Approval was granted for a proposal involving foreign direct investment into an Indian engineering company to finance downstream investment by the promoter group into electricity transmission and distribution activities, and to permit transfer of the entire equity from resident nominee shareholders of the existing foreign parent to a foreign finance affiliate and other foreign collaborators and nominees.