FIPB defers approval on Vodafone's India unit holding

The Foreign Investment Promotion Board (FIPB) Monday deferred a decision on the Vodafone Group Plc's request for permission to fully own its India unit, an official said here.

Vodafone entered India in 2007 by buying Hutchison Whampoa's assets in a $11 billion deal. It directly owns 64.38 percent in its India unit.

In August 2013, the country allowed 100 percent foreign direct investment (FDI) in telecommunications sector, which would facilitate players like Vodafone Group Plc to fully own their India units.

In October-end, the company said in a statement: "Vodafone confirms it has filed an application with the Foreign Investment Promotion Board to increase its holding in Vodafone India Ltd (VIL) from 64.38 percent to 100 percent."

"The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs.10,141 crore. Following the completion of these transactions, Vodafone will also consider providing additional funding to VIL by subscribing to equity shares of VIL," the statement added.