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India,Norway,United Arab Emirates : NORWEGIAN TELENOR received green signal from FIPB [TendersInfo (India)](TendersInfo (India) Via Acquire Media NewsEdge) The stake enlargement plan of Telenor, the leading telecom services provider of Norway, has received nods from the Foreign Investment Promotion Board (FIPB) of India. The Norwegian telecom giant has proposed to boost its stake in Telewings Communications, its joint venture business, to 74% from 49% now. However, the FIPB has reserved its decision on the pact involving Indian Jet Airways and Etihad Airways of the UAE and requested for further transparency on ownership. The Department of Economic Affairs Secretary Arvind Mayaram revealed, It (Jet Airways Etihad proposal) has been deferred. We need more details of effective control and ownership. The official has made this disclosure during his press conference following the FIPB meeting on Friday. In 2012, the Norwegian telecom major formed a new joint venture with Lakshdeep Investments & Finance subsequent to the departure of its previous JV partner Unitech from their joint venture company - Uninor. The FIPB made a rescheduling decision for the Telenor s offer for boosting its stake to 74% from 49% in this March. The Telenor CEO Jon Baksaas had communicated his displeasure over the delay while he met the Union Commerce & Industry Minister Anand Sharma in Myanmar in recent times and had requested for Mr. Sharma s involvement. The Telenor proposal has been approved, confirmed Mayaram. He has revealed this after the FIPB s meeting on Friday, reflecting the company s receipt of the longed-for clearance. The early last year verdict of the Supreme Court of India brought huge setback for the Norwegian telecom major, as it lost its 22 licenses for Indian operations. The apex court terminated the complete bunch of 2G licenses in India that were granted during the tenure of controversial ex- telecom minister A Raja. Telenor then took part in new auctions in late 2012 and secured licenses for operating in six circles in India. Regarding the approval to the Jet-Etihad deal, the FIPB s verdict is not surprising because there are unresolved issues related to ownership and management, which were raised by the market regulator SEBI and Competiion Commission of India. The Abu Dhabi-based Etihad Airways has charted plans for acquiring 24% stake in Jet Airways of India for around Rs 2,058 crore. The DIPP is not clear if the Jet s NRI owner Naresh Goyal s stake in the airline is a component of Foreign Direct Investment (FDI) or not and thus it is making assessments to settle on the issue. Jet s proposal is the biggest foreign investment offer in the country s aviation industry after the Government of India changed FDI rules related to the acquisition of stake in domestic airlines in last September. With this, now foreign carriers can buy up to 49% of stake in local airlines. The FIPB cleared AirAsia s offer to form a JV airline with Tata and Telstra Tradeplace in this March. (c) 2013 Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |