NEW DELHI, MAY 25: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved YES Bank’s proposal to increase foreign investment limit to 74 per cent, from the existing foreign equity of 41.87 per cent.
An official communication said that the limit can be increased by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors.
“This will result in a Foreign Direct Investment of $1 billion in the country,” the communiqué said.
The mode of instruments includes Qualified Institutional Placement (QIP) of equity shares and/or issue of ADRs/GDRs and/or QFIs/FPIs under the Portfolio Investment Scheme (PIS) by acquisition of permissible securities on stock exchange (except NRIs).
The Cabinet also gave its green signal to to amend the Institutes of Technology Act, 1961 for incorporation of six new IITs at Tirupati (Andhra Pradesh), Palakkad (Kerala), Dharwar (Karnataka), Bhilai (Chhattisgarh), Goa, Jammu (J&K) and conversion of ISM, Dhanbad to an IIT under the Institutes of Technology Act, 1961.
It also okayed the establishment of a National Institute of Technology in Andhra Pradesh.
The government also gave its nod to the proposal of financial restructuring of Hindustan Fertilizer Co Ltd (HFCL) to revive one of their defunct units in Barauni.
The unit has been lying defunct since 1999. It will now serve as anchor unit to Jagdishpur- Haldia gas pipeline being laid by GAIL, which is critical for development and growth of economy and infrastructure in eastern India.
The Cabinet also granted its nod for financial restructuring and takeover of Hindustan Steel Works Construction Ltd by National Buildings Construction Corporation Ltd . It has also approved the introduction of two Bills in Parliament for certain amendments in the Constitution (Scheduled Tribes) Order, 1950 so as to modify the list of Scheduled Tribes in respect of five States, namely, Assam, Chhattisgarh, Jharkhand, Tamil Nadu, Tripura and identification of new communities in Puducherry.
The Cabinet also approved the MoU that was signed between the Indian Space Research Organisation (ISRO) and the United Arab Emirates Space Agency (UAESA) for cooperation in the exploration and user of outer space for peaceful purposes.