23 December 2000

Government clears 28 FDI proposals; Enron proposal approved
New Delhi: The government has cleared 28 foreign direct investment (FDI) proposals, including that of US-based Enron Corporation for setting up a Rs 1083-crore gas-based power station. The Enron proposal is for a natural gas fired combined cycle power station based on imported Liquefied Natural Gas (LNG) at Dhabol in Maharashtra.

The Foreign Investment Promotion Board (FIPB) clearance would now enable Enron to restructure foreign equity in the project. Acting on recommendations of the FIPB, Mr. Murasoli Maran, union commerce minister cleared FDI proposals worth Rs 1,306 crore covering various sectors like agro-chemicals and aquaculture, computer software development and maintenance, power, ISP services, telecommunications, tourism, light and heavy engineering, management and engineering consultancy.

21 December 2000

RBI to extend deadline for reducing bank promoters' stake
Mumbai: The Reserve Bank of India (RBI) is likely to consider the possibility of extending the deadline set for promoters of private banks to reduce their stake to 40 per cent. RBI regulations stipulate that promoters of private banks should reduce their holdings to 40 per cent by March 31, 2001.

Five of the nine private sector banks have been unable to do this due to the poor capital market conditions. These banks had urged the apex bank to extend the deadline.