New Delhi: The government has approved NRI billionaire Lakshmi Mittal-led ArcelorMittal’s over Rs500 crore foreign direct investment (FDI) for acquisition of 35% stake in steel products maker Uttam Galva.

The proposed FDI of Rs503.37 crore by ArcelorMittal, Netherlands, has been approved by the Foreign Investment Promotion Board (FIPB), the finance ministry said in a statement here.

The FIPB nod is a major regulatory go-ahead for the deal, which would mark the first operational presence in India for the world’s largest steelmaker whose greenfield projects here have been plagued by regulatory and administrative hurdles.

Last month, ArcelorMittal had threatened to abandon its $20 billion steel projects in Orissa and Jharkhand over delays, but said it will look for new sites within the country.

The Uttam Galva deal is also currently awaiting a nod from market regulator Sebi.

The investment is for “induction of foreign equity in a company engaged in the business of manufacture of cold-rolled semi finished iron and steel products in cold rolling mills etc,” the ministry said.

In early September, ArcelorMittal had agreed to acquire 35% stake in Uttam Galva, a domestic producer of steel products, for about Rs500 crore. The proposed deal comprises of purchase of 5.61% stake from Uttam Galva’s existing promoters and another 29.39% through an open offer made to the public shareholders.