Rs 8,000 cr FDI in Essar Power approved

New Delhi, May 9 (UNI) The Government today allowed Essar Power Limited, Mumbai, to operate as holding company and infuse up to Rs 8,000 crore Foreign Direct Investment (FDI) for making further downstream investments.

In raising FDI ceiling to 100 per cent, EPL has been granted the status of 'foreign owned holding company', Finance Minister P Chidambaram told reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA) which gave the approval.

EPL can make downstream investment in permitted activities, including investment in the power sector and coal mining for captive consumption for power projects.

The approval is on the following conditions: -- The downstream investment should be in compliance with the provisions of Press Note 9 of 1999.

-- The private Indian companies setting up or operating power projects as well as coal or lignite mines for captive consumption in such projects will be allowed foreign equity up to 100 per cent provided coal or lignite produced by them is meant entirely for captive consumption in power generation.

UNI YJ RP BD1347