FIPB clears Vodafone deal

New Delhi: The Foreign Investment Promotion Board (FIPB) today cleared the British telecom giant Vodafone‘s deal to buy mobile carrier Hutchison Essar subject to some conditions, after deferring a ruling thrice.

The file will now go to the Finance Ministry for a formal and final approval. FIPB has said the British company - the world‘s largest mobile operator in terms of revenues - has to comply with Press Note three of the Foreign Direct Investment rules, which were recently amended to permit FDI up to 74 per cent.

The FIPB which functions under the Finance Ministry has also said the 15 per cent stake held by Indians Analjit Singh and Ashim Ghosh and foreign investors cannot be


Vodafone had bought a controlling 52 per cent stake in HEL from Hong Kong-based Hutchison Telecom International at a total enterprise value of over 18 billion dollars.

Expressing concern on the FDI inflow into India , FIPB said the Government should review the guidelines relating to foreign investment in the country across all sectors. ‘‘Under existing norms and guidelines, the FIPB has cleared the Vodafone deal, but the loopholes in the system need to be plugged,‘‘ an official told reporters after the meeting here.


In the last three meetings, the Board had sought more details about the deal, particularly the size of the foreign holding in the firm.

Satisfied that the shareholding of both Analjit Singh and Asim Ghosh was Indian, the FIPB said the approval of the Government would be needed to transfer the shares held by two Indian shareholders.

‘‘FIPB was satisfied that Vodafone only held 52 per cent under the Joint Venture,‘‘ said an FIPB official.

Under recently announced Press Note 3 ‘‘Indirect foreign investment shall mean foreign investment in the company/ companies holding shares of the licensee company and their holding company/companies or legal entity (such as mutual funds, trusts) on proportionate basis. In any case, the `Indian‘ shareholding will not be less than 26 per cent.‘‘


Latest Reads
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications
Digital TV, growing telecom major drivers of coaxial cable growth in A-Pac: Study

MUMBAI: The global coaxial cables market is mature owing to the use of coaxial cables in industries for a long time and the slow or stagnant product innovation.

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories