The proposals of General Motors India Ltd, GE Caps, Tata Electric, Sumitomo Corporation, Denso Corporation of Japan and Thomson Electronics were also approved.

VSNL's proposal would now go to the Cabinet Committee on Foreign Investment (CCFI) for final approval.

VSNL's $400 million issue also has a greenshoe option of $11 million. The department of economic affairs in the finance ministry has already given its in-principle approval to the issue and roadshows for the same are expected to begin soon. VSNL plans to issue 10 million shares not exceeding 52.86 per cent.

GMI has been permitted to hike the lump sum royalty payment to its parent General Motor Corporation of the US while Sumitomo has got the nod for pumping in fresh equity to the tune of $6 million in its existing 100 per centsubsidiary.

Tata Electric Company's application proposed a foreign direct investment of Rs 425 crore for setting up of a Rs 2,350 crore LNG terminal from total gas and power at its power plant in Trombay, Maharashtra. The foreign partner would have a 50 per cent equity stake.

Denso Corporation has been allowed to invest Rs 7 crore for setting up a 100 per cent subsidiary for assisting, advising and supporting and providing after sales services to their clients.

The FIPB has cleared UK-based National Power's proposal to set up a 100 per cent owned subsidiary for providing consultancy in power sector with an investment of Rs 21.25 crore while CMS Energi of the US has been allowed to set up a wholly-owned subsidiary for consultancy in engineering projects with FDI of Rs 210 crore.

Other proposals which have been cleared include Singapore Telecom proposal to set up a 100 per cent owned subsidiary, Satyam Infoway proposal for a joint venture with South Asia Regional Fund and Himalayan proposal for a jointventure with Strategy Net Inc.

Morgan Stanley India has got the green signal for a venture for business advising services to its own downstream units in the country.

The US-based ICF Kaizer Engineering and Japan's Nippon Sharyo have been allowed to invest Rs 84 crore to acquire a 53 per cent stake in a joint venture for setting up an elevated urban light railed transit system in Bangalore.

Other approved proposals include Tiger Oats of Mauritius for acquiring a 49 per cent stake in Godrej Agrovet.