The Cabinet Committee on Economic Affairs (CCEA) has given its stamp of approval for the proposal of ATC Asia Pacific Pte Ltd, Singapore to acquire 51% shareholding in Viom Networks Ltd by method of transfer from existing shareholders.
- The approval would bring in a total foreign direct investment inflow of ₹5, 856.51 crore into the telecom base of the nation.
Nod to Andrew Yule proposal
Along with ATC Asia Pacific Pte Ltd, the CCEA has also given its approval for transformation of Working Capital Term Loan (WCTL) mounting to ₹29. 91 crore from Bank of Baroda (BoB) into equity by issuing an essential number of value shares of Andrew Yule and Co Ltd (AYCL).
- How the conversion of WCTL into equity will affect AYCL?
The conversion will bring down the cost of debt servicing by AYCL by ₹2.86 crore per annum, resulting in improved profitability and liquidity of AYCL in coming years. It will enhance the opportunities to finance working capital needs of businesses.
Approval on accord between India and Exim Bank
The Union Cabinet has given its assent for expanding the framework agreement between Exim Bank and a consortium of Iranian banks lead by Central Bank of Iran for financing the purchase of goods and services from India to ₹3,000 crore from ₹900 crore.
- This will be done by using the Export Development Fund (EDF).
- The proposal will promote India’s exports with Iran.