NEW DELHI, July 5: Soft drink multi-national Coca Cola scored over its rival Pepsico with the Cabinet Committee on Foreign Investments (CCFI) at a meeting here on Friday night when the board cleared its proposal for setting up two wholly-owned subsidiaries with an investment of $700 million.

The rider in the approval, however, is that 49 per cent stake would have to be divested to Indian shareholders within three to five years.

The CCFI, on the other hand, took no decision on Pepsico's proposal to increase its holding from $255 million to $400 million even though it was on the agenda, sources said.

Pepsico, in its proposal, has asked for an increase in its stake for five years. Four power project proposals and one telecom offer were also approved at the CCFI meeting.

The four power projects account for a foreign equity of about Rs 1,595 crore with an investment size of over Rs 5,000 crore. They envisage a total production of 1,243 mw, when completed.

According to sources, Jindal Traclasel Power Company has been allowed to increase its foreign equity from 50 per cent (Rs 180 crore) to 65 per cent (Rs 325 crore) in the Rs 1,200-crore thermal power project in Bellary district of Karnataka for generating 240 mw.

Trisakhi Energy Pvt Ltd has been allowed 100 per cent equity of Rs 729-crore in the 500-mw power project in MGR district of Tamil Nadu with an investment of Rs 2,430 crore including a debt component of Rs 1,701 crore. Gurakalo AG was allowed 95 per cent equity investment at Rs 159.02-crore for a 156 mw diesel-based project near Mangalore.

The project envisages domestic investment of Rs 21.67 crore and a foreign investment of Rs 337.52 crore. The CCFI meeting also approved the proposal of M/s Cellular Communication India Ltd for foreign equity participation to the extent of 49 per cent amounting to Rs 457.36 cr for mobile services. The proposal was for changing the name of the foreign collaborator from Air Touch International of US to its wholly-owned subsidiary Air Touch International (Mauritius) and the name of the Indian company from Cellular Communication India to RPG Cellcom Ltd. The proposal of STI Power Ltd, New Delhi for setting up a 347 mw dual fuel-naptha gas combined cycle power project in Guna, Madhya Pradesh at a cost of Rs 1,274 crore was also approved.

The STI Power Ltd proposal would have a total foreign equity holding of 74 per cent.