The government has approved 16 foreign direct investment proposals, including that of Russia telecom firm Sistema and Italian fashion retailer Dolce & Gobbana, envisaging a total inflow of Rs 647.48 crore (Rs 6.47 billion).

Sistema Corporation plans to raise its stake up to 74 per cent in Shyam Telelink at an estimated investment of Rs 187 crore (Rs 1.87 billion), an official statement said.

Finance Minister P Chidambaram cleared the proposals on the recommendations of Foreign Investment Promotion Board (FIPB), which met here on November 30.

A proposal of Italy-based Dolce & Gabbana and India's bigger realty firm DLF for setting up a joint venture in single brand retailing of lifestyle products was also cleared.

The Italian firm will hold 51 per cent stake in the JV, which will sell fashion and lifestyle products under the brand name Dolce & Gabbana and DG Dolce & Gabbana.

Sistema, which is listed on London Stock Exchange and controls Russia's largest mobile operator, plans to acquire 51 per cent stake in Shyam Telelink in the near future. It may ramp up the shareholding to the maximum permissible limit of 74 per cent later, official sources said.

Chidambaram also approved German firm Continental AG's proposal amounting an inflow of Rs 55 crore (Rs 550 million) to set up a new joint venture company to manufacture hydraulic brake systems for passenger cars and light-trucks.