Sam Pitroda-promoted World Tel has teamed up with Reliance Strategic Investment Pvt Ltd to invest in Indian telecom and e-commerce ventures.
The venture was cleared yesterday by the Foreign Investment Promotion Board (FIPB), which had previously deferred a World Tel proposal to set up a 100 per cent subsidiary.
Under the proposed structure of the new company, World Tel will hold a 49 per cent stake _ constituting foreign equity _ while the Indian partner Reliance Strategic Investment will also hold 49 per cent. The remaining two per cent will held by an employees' welfare trust. This would also constitute Indian equity.
According to the proposal, the World Tel partner is part of the Reliance Group. However, when Reliance Industries officials were contacted, they declined comment.
World Tel had previously proposed to set up a wholly owned subsidiary, which would invest in telecom, Internet and e-commerce ventures.
This was turned down on the grounds of a sectoral foreign investment cap of 49 per cent.
The modified proposal has been cleared on the grounds that the foreign investment, direct or indirect, is restricted to 49 per cent.
