Press Trust of India / New Delhi Oct 19, 2009, 14:12 IST
The government today approved Norwegian telecom company Telenor's proposal to raise stake in its Indian joint venture Unitech Wireless to 74 per cent, the maximum permitted in the sector.
The Cabinet Committee of Economic Affairs (CCEA) gave its nod to Unitech Wireless Tamil Nadu for enhancing foreign shareholding by Telenor Asia (Singapore) up to 74 per cent, Commerce Minister Anand Sharma told reporters. Telenor would for now pump in an FDI of Rs 3,740 crore for raising the stake to 67.25 per cent from the present 49 per cent.
The Norwegian company had in August this year obtained Foreign Investment Promotion Board approval to enhance stake to 74 per cent. All foreign investments over $600 million (over Rs 2,800 crore) are to be approved by the CCEA.
Telenor had paid Rs 1,250 crore in March and Rs 1,130 crore in May for acquiring 49 per cent equity in the joint venture. It had agreement to scale it up to 67.25 per cent at a total investment of Rs 6,120 crore.
With the CCEA approval in place, it will complete acquisition of remaining equity by year-end in two additional tranches.
The company plans to start services in December under Uninor brand in eight circles — four in south and one each in UP (East-West), Orissa and Bihar.
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