RCom and the present shareholders of Aircel Ltd (Maxis Communications Berhad) will hold 50 per cent each in the merged entity, with equal representation on the board and committees.
The company has received approval of "the Securities and Exchange Board of India (Sebi), BSE Ltd (BSE) and National Stock Exchange of India Ltd (NSE) for the proposed Scheme of Arrangement for demerger of the wireless division of the company into Aircel Ltd and Dishnet Wireless Ltd", RCom said.
The proposed transaction is subject to necessary approvals, it added.
RCom, on September 14 last year, announced it will merge its wireless telecom business with smaller rival Aircel to create the country's 4th-biggest mobile phone operator, with asset base of more than Rs 65,000 crore and net worth of Rs 35,000 crore.
Both the companies will transfer Rs 14,000 crore of debt each to the joint venture, taking the total debt of the new company to Rs 28,000 crore.
The transaction will reduce RCom's debt by Rs 20,000 crore, while Aircel's debt would go down by Rs 4,000 crore on closing in 2017.
RCom stock was trading 1.93 per cent higher at Rs 36.95 on BSE.
Indian mobile services market - the world's second largest after China - has been in a midst of consolidation drive, intensified by the disruptive entry of newcomer Reliance Jio.
Last month, telecom operator Bharti Airtel announced it will acquire Norwegian Telenor's India unit.
Vodafone India and Idea too are working on merging their businesses to create the biggest telecom operator in the country with about USD 12 billion in sales.