Telenor gets nod to raise stake to 74% in Unitech

The Cabinet Committee of Economic Affairs (CCEA) gave the nod to Unitech Wireless Tamil Nadu, for enhancing foreign shareholding by Telenor Asia (Singapore) up to 74 per cent, Commerce Minister Anand Sharma said.

Telenor would for now pump in an FDI of Rs 3,740 crore for raising the stake. The Norwegian company had in August this year obtained the Foreign Investment Promotion Board approval to enhance stake to 74 per cent. All foreign investments over $600 million (over Rs 2,800 crore) are to be approved by the CCEA.    

Unitech Wireless is a joint venture between India’s Unitech Group and Telenor. The Norwegian firm has invested in the joint venture through its Singapore-based subsidiary Telenor Asia.

Telenor had paid Rs 1,250 crore in March and Rs 1,130 crore in May for acquiring 49 per cent equity in the joint venture. It had agreement to scale it up to 67.25 per cent at a total investment of Rs 6,120 crore. The company plans to start services in December under Uninor brand in eight circles — four in south and one each in UP (East-West), Orissa and Bihar.

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