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Investment board okays Telenor plan to hike stake to 74% in arm [Financial Express (India)](Financial Express (India) Via Acquire Media NewsEdge) The Foreign Investment Promotion Board (FIPB) on Friday approved Norwegian telecom major Telenor's proposal for increasing stake by 25% in its domestic subsidiary Telewings to 74%. The proposal, which was deferred earlier, was to increase Telenor's stake in its joint venture firm Telewings Communications from 49% to 74%, touching the foreign direct investment cap allowed in the telecom sector. Under FDI rules, a foreign telecom company can raise stake up to 49% under automatic route, beyond which the company has to take FIPB's approval to raise stake up to 74%. "The Telenor proposal has been approved," Mayaram said. Telenor had got into a new joint venture last year with Lakshdeep Investments & Finance after its earlier partner Unitech exited from the Uninor joint venture. The company's proposal to increase its stake from 49% to 74% was deferred by the FIPB in March this year. Sources say home ministry had raised objections on Telenor's operations in Bangladesh and Pakistan that can pose a security risk to India. Telenor Group CEO Jon Baksaas expressed his disappointment at the delay in his meeting with commerce and industry minister Anand Sharma recently in Myanmar and had urged for the minister's intervention. Telenor had lost its 22 licences for operating in India after the Supreme Court judgment early last year, cancelling all 2G licences issued during tainted former telecom minister A Raja's tenure. It participated again in fresh auctions later in the year and won licences for six circles. Copyright 2013 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com Credit: fe Bureau (c) 2013 The Indian Express Online Media Pvt. Ltd., distributed by Contify.com |