Finance ministry examining Essar's $ 2 bn FDI proposal

The Finance Ministry is believed to be examining a proposal by the Ruias-led Essar Group to bring in foreign investment of up to $2 billion (about Rs 8,000 crore) through Mauritius-based Essar Power Holdings in Essar Power.

"The Essar Power's proposal of bringing $2 billion was discussed by the Foreign Investment Promotion Board (FIPB) at its meeting held on Friday, but it has been deferred," official sources said.

The company has been asked to provide further details about the investment. Once recommended by the FIPB, the proposal is expected to be considered by the Cabinet Committee of Economic Affairs (CCEA) due to large size of foreign investment, the sources said. The Essar Power, an arm of Essar Group, plans to bring over foreign investment through Essar Power Holdings (EPH) for equity investment in its proposed power projects across the country.