CCEA clears FDI proposal of two power entities
The government has approved the proposals of two power sector entities for bringing in foreign direct investment (FDI) worth Rs6,500 crore.
The Cabinet Committee on Economic Affairs (CCEA) gave the green signal to Grid Equipment for bringing in FDI to the tune of Rs4,500 crore, an official said.
Energy Grid Automation Transformers and Switchgears India’s proposal for Rs2,000 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. Alstom in India is mainly into power generation equipment while Areva T&D India is a leading transmission and 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.