Centre Approves FDI Of Rs 2480.92 Crore In ATC Telecom Infrastructure; Gives Nod To Capital Infusion Into NIIF | Cabinet Decisions Highlights

Union Minister Prakash Javadekar on Wednesday announced various crucial economic decisions taken by the Union Cabinet chaired by the Prime Minister Narendra Modi. Check highlights here

New Delhi: Union Minister Prakash Javadekar (PTI Photo/Kamal Singh)(PTI03-06-2020_000160B)

Union Minister Prakash Javadekar on Wednesday announced that the Cabinet Committee on Economic Affairs chaired by Prime Minister has approved the FDI of Rs 2480.92 crore in M/s ATC Telecom Infrastructure Private Limited by M/s ATC Asia Pacific PTE Limited as a result of exercise of put option by M/s Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL).  Addressing the reporters in the press conference held in Delhi today, the Union Minister while announces the crucial Cabinet decisions said that with this approval the cumulative FDI of M/s ATC Asia Pacific PTE Limited (ATC Singapore) into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs. 5417.2 crore in financial years 2018-19 to 2020-21. Capital infusion into NIIF Infrastructure Debt Financing Platform Union Cabinet approved the proposal for equity infusion by Government of Rs 6000 crores in NIIF Debt Platform. As per the announcement, Rs 6,000 crores will be invested as equity in the NIIF Debt Platform over two financial years, i.e., 2020-21 and 2021-22. The Cabinet said that the move is NIIF Infrastructure Debt Financing Platform is expected to contribute nearly Rs 1 lakh crores in debt to the infrastructure sector over the next 5 years which will act as a catalyst in attracting more investments. Moreover, the process will also help relieve exposure of banks to infrastructure projects and free up space for new green-field projects. Lakshmi Vilas Bank Amalgamation The Union Cabinet has approved the scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Limited. With the approval of the scheme, LVB will be amalgamated with DBIL from the appointed date and DBIL will infuse fresh capital of Rs 2,500 crore into LVB. With this, there'll be no further restrictions on depositors regarding the withdrawal of their deposits. The cabinet further said that the speedy amalgamation and resolution of the stress in LVB is in line with Government's commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system.