The FIPB, in a meeting held on Saturday, noted this in the context of two major proposals in the power sector: GVK Power (Krishnapatnam) Ltd and GVK Industries. Both the proposals will now be taken up under the proposed guidelines.

Official sources said the industry ministry has prepared a note in consultation with the power ministry which will be issued in the next few days. The note is expected to define the foreign equity limit up to which a particular proposal will be cleared under the automatic route. Sources said that the foreign equity limit is likely to be in the region of Rs 1,500 crore.

Both the power proposals had been pending with the FIPB for over three months. GVK Power (Krishnapatnam), which is implementing the 500 MW coal-based power project atKrishnapatnam at Andhra Pradesh, has sought approval for foreign equity up to 100 per cent amounting to Rs 670 crore on full repatriation basis.

The FIPB has, meanwhile, cleared Fiat India Automobiles Private Limited's proposal to buy out the 49 per cent stake held by its joint venture partner Premier Automobiles Ltd at a price of Rs 32 crore in the recently-formed Ind Auto Ltd. At present, Fiat India Automobiles Ltd (FIAL) holds 51 per cent equity in the joint venture company.

FIAL had sought the Centre's approval to bring in Rs 466 crore to subscribe to cumulative participating preference shares amounting to Rs 400 crore floated by Ind Auto.