 "Telenor gets FIPB nod to raise stake in Indian arm")
“Telenor’s proposal has been approved,” Economic Affairs Secretary Arvind Mayaram, who heads FIPB, told reporters after the meeting on Friday. FIPB had deferred the proposal twice, seeking clarifications from the Norway-based telecom operator. The ministry of external affairs had raised questions about Telenor’s alleged involvement in the 2G spectrum allocation case.
According to Telenor’s proposal, the projected foreign direct investment (FDI) inflow in the new joint venture would be about Rs 1,500 crore.
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Telenor South Asia Investments Pte Ltd in Singapore had sought FIPB’s approval to pick up 74 per cent in Telewings Communications, a joint venture with Lakshdeep Investments and Finance Pvt Ltd, which had bought a 26 per cent stake in the joint venture last year.
“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 per cent to 74 per cent in Telewings Communications Services Private Limited. We await the formal communication of this application from the Indian government,” a Telenor spokesperson said in e-mailed statement.
Telenor, which entered in India in 2009, had a joint venture with real estate giant Unitech, in which the Norway-based telecom operator held a 67.25 per cent stake. The venture, Unitech Wireless, had operating permits in 22 telecom service areas. The partners decided to part ways after Unitech Managing Director Sanjay Chandra came under the scrutiny of the Central Bureau of Investigation (CBI) in the 2G scam. Telenor had bought back the entire stake held by Unitech Group in the joint venture.
Meanwhile, Telenor’s operating permits were quashed following Supreme Court’s February 2012 order, which cancelled 122 telecom licences of operators. The Norway-based telco decided to bid in the fresh spectrum auction through Telewings Communications, to continue its India operations. It won fresh spectrum in six circles for Rs 4,018 crore.
The external affairs ministry had earlier stated that a Letter Rogatory (letter of request) had been forwarded to the authorities in Singapore. Exchange of information with regard to investigation on the involvement of Telenor Asia Pte Ltd in the 2G spectrum allocation case is underway. It was alleged that Telenor Asia Pte Ltd worked closely with Unitech Ltd, which has been under scrutiny for various issues in Singapore by investigation agencies.
The ministry had noted the department of telecommunications had in 2008 allotted Unified Access Service licences to the group companies of Unitech, later offloaded to Telenor Asia Pte for Rs 6,100 crore ($1,356 million) and Telenor Asia became the major shareholder in Uninor. However, the department of industrial policy and promotion had given its no-objection to Telenor’s proposal long before.