The Foreign Investment Promotion Board (FIPB) is expected to take up some key FDI proposals of telcos, which were deferred earlier, at its meeting scheduled for Friday.
The proposals of Verizon, Etisalat DB, STel, Essar Capital Holdings, and Telcordia Technologies are scheduled to be discussed at the April 9 meeting, according to sources.
In the case of the US-based Verizon, the FIPB that clears foreign direct investment (FDI) proposals, is seeking information on its Pakistan operations before taking a call on clearing its proposal for transfer of equity shares, say sources. Verizon holds ILD (international long distance) licence in partnership with the Videocon Group.
Etisalat DB's plan to raise foreign holdings in its Indian operation is also stuck as the finance ministry had said that the company was planning treaty shopping, which is about using the Mauritius route or any other countries that are tax havens, to bring investment into the country.
The home ministry had also raised security issues in this case as Etisalat too had operations in Pakistan. The UAE-based Etisalat holds 45 per cent in Etisalat DB, which was earlier known as Swan Telecom.
The case of STel, another new telecom licensee, is similar to that of Etisalat. STel, in which Bahrain Telecom holds 42 per cent, wants to increase the foreign holding in the company. DoT and home ministry have raised security concerns in the case of STel.
Earlier this year, DoT had asked STel to stop its mobile services in Himachal Pradesh, Orissa and Bihar, over security issues.
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As for the US-based Telcordia, which has been chosen for implementing mobile number portability in the country, the home ministry has already given a conditional clearance to the company. The board may take a decision on this matter too at its Friday meeting.
The board had deferred the Ruia family-owned Essar Group’s proposal to transfer 49 per cent holding of Essar Telecom Holding to the Mauritius-based entity Essar Telecom India. Essar Telecom Holding owns close to 10.97 per cent in telecom joint venture Vodafone Essar.