Cabinet meet: Govt allows HDFC to raise Rs 24,000 Cr by FDI

RSTV Bureau
Prime Minister Narendra Modi (PTI)

Prime Minister Narendra Modi (PTI)

Prime Minister Narendra Modi on Wednesday took a stock of economic progress as well as reviewed the progress of centre’s flagship schemes in a cabinet meeting on Wednesday. The meeting also took up the agenda for the last year of the BJP-led NDA government at the centre before general elections next year.

The meeting was held in the Parliament house where all the ministers were present, including Prime Minister’s senior cabinet colleagues.

In the cabinet meet, the government gave approval to HDFC Bank to raise Rs 24,000 crore in foreign direct investment (FDI) to fund its business growth. With the raising of this capital, FDI in the bank would hit the regulatory ceiling of 74 per cent.

Currently, the FDI in the banks stands at 72.62 per cent. Of the additional Rs 24,000 crore, Rs 8,500 crore is proposed to be allotted to HDFC Ltd, the promoter, on a preferential basis.

Among other major decisions in the cabinet meet, OBC commission’s term has been extended up to 31st July and a new 5 star hotel will be built on land of Pragati Maidan convention centre.

Besides the government schemes, the meeting also discussed issues like farmer distress and the government’s efforts to provide relief to them through various initiatives announced in the Budget.

Among the prominent flagship schemes include Pradhan Mantri Jan Aushadhi Yojana, Ayushman Bharat, Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Ujjwala Yojana, Start-up funding scheme, Mudra Yojana.