The Foreign Investment Promotion Board (FIPB), on Friday, cleared Norwegian telecom operator Telenor’s proposal to hike stake in its Indian subsidiary to 74 per cent from 49 per cent, but put on hold the Rs.2,058 crore Jet-Etihad deal.
Telenor gets nod
“Telenor proposal has been approved. The Jet-Etihad proposal has been deferred. We need more details on effective control and ownership,’’ Economic Affairs Secretary Arvind Mayaram said after the FIPB meeting.
Telenor had sought government approval to hike stake by 25 per cent in its domestic subsidiary Telewings Communications to 74 per cent. “In accordance with procedure, the Telenor Group has applied for FIPB approval 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,’’ Telenor said in a statement.
In March, the FIPB had deferred decision on the proposal. Telenor group President and CEO Jon Fredrik Baksaas had met Commerce and Industry Minister Anand Sharma in Myanmar, and raised the issue.
Reacting to the Jet-Etihad decision , Civil Aviation Minister Ajit Singh said SEBI had raised some concerns, and asked both airlines to rectify some parts of the pact. “I don’t see any major problem for the deal,’’ he added.
Once the FIPB clears it, the matter would be sent to the Cabinet Committee on Economic Affairs for approval.