FIPB defers Vodafone proposal to hive off tower biz

The Foreign and Investment Promotion Board (FIPB) has deferred a decision on Vodafone Essar's proposal to hive off its tower businesses into a separate company as the Home Ministry is understood to have sought more time to examine it.

The Ministry has asked for a deferment of a proposal made by Ortus Infratel (name of the proposed tower business) as it needs more time to examine it, sources said.

Ortus had applied to the FIPB, the government body that clears all major foreign investments in India, seeking to acquire 100 per cent share capital of Vodafone Essar Infrastructure by way of subscription to new shares.

Ortus had also sought approval to hold Vodafone Essar’s 42 per cent stake in Indus Towers, an independent tower company jointly floated by Vodafone Essar, Bharti Airtel and Idea cellular, to provide shared telecom infrastructure to operators.

The proposal envisages a possible foreign investment of $100 million (about Rs 500 crore).