Telecom Ministry To Take Final Call On Idea’s 100% FDI Proposal

By Archana L
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    The Commerce and Industry Minister, Suresh Prabhu said that the telecom ministry will take a final call on the Idea Cellular Limited's proposal regarding infusing of 100 percent foreign direct investment in the company, reports from PTI.

    Telecom Ministry To Take Final Call On Idea’s 100% FDI Proposal

    He said that the telecom ministry is the competent authority to take a final decision about Idea's proposal.

    Department of Telecom (DoT) has put in some conditions while seeking views of the Department of Industrial Policy and Promotion (DIPP) on the said proposal.

    "The matter is completely in the domain of the line ministry. We have already clarified. No need of our approval," Prabhu said.

    He further added that the matter was communicated to DoT that they are the competent authority to deal with the proposal.

    "We have sent back (the proposal) immediately. We have stated that it is for you to decide," he said, adding that tax liabilities do not constitute an additional condition.

    Currently, the FDI policy allows any overseas firms to buy up to 49 percent stake in an Indian telecom company under automatic approval. For the stake which is over and above 49 percent, government's approval is required.

    Telecom companies - Idea and Vodafone announced that they will combine their operations to create the country's largest telecom operator worth over USD 23 billion.

    The foreign shareholding in Idea as on March 31, 2018, stands at 34 percent along with 7.49 percent in promoter group and the rest as public shareholders. The British telecom multinational Vodafone Group Plc is a majority shareholder in Vodafone India.

    Foreign companies stake holding in the combined entity will break the automatic sanction limit of 49 percent.

    As per the existing Idea-Vodafone merger announcement, Vodafone will hold 45.1 percent of the combined entities after transferring 4.9 percent stake to Aditya Birla Group for Rs 3,900 crore in terms of cash, concurrent with the completion of the merger.

    As the DoT had added a condition in the proposal, the matter was sent to the DIPP.

    Read more about: telecom company
    Story first published: Monday, May 7, 2018, 12:50 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more