Telenor allowed to raise stake in Indian joint venture

The Foreign Investment Promotion Board (FIPB) Friday approved a proposal by the Norwegian telecom operator, Telenor, to raise its stake in its Indian joint venture from 49 percent to 74 percent, Economic Affairs Secretary Arvind Mayaram said here.

In March this year, the FIPB had deferred the company proposal to raise its stake from 49 percent to 74 percent.

The company got into a new joint venture with Lakshdeep Investments & Finance last year after its previous partner Unitech moved out of the Uninor joint venture.

Telenor said it is awaiting communique from the Indian government on this approval.

"In accordance with procedure, Telenor Group have applied for FIPB approvals to allow us to invest further in India and increase our ownership from 49 to 74 percent in Telewings Communications Services Private Limited. We await the formal communication of this application from the Indian Government," the company said in a statement.

Last year, the Norwegian telco lost its 22 licences for operating in India following the Supreme Court judgment that led to cancellation of all 2G licences issued during former telecom minister A Raja's tenure.

Later, Telenor participated in a fresh auction and bagged licences for six circles.