New Delhi: The Finance Ministry on Friday cleared the foreign proposal of Norway's Telenor to hike stake in its domestic subsidiary to 74 percent from 49 percent.
"Telenor proposal has been approved," Economic Affairs Secretary Arvind Mayaram said after the meeting of Foreign Investment Promotion Board (FIPB).
Telenor had sought government approval to hike stake by 25 percent in its domestic subsidiary Telewings Communications to 74 percent.
"In accordance with procedure, Telenor Group have applied for FIPB approvals to allow us to invest further in India and increase our ownership from 49 percent to 74 percent 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, FIPB had deferred decision on the proposal.
Telenor's India unit, which operates under the brand name Uninor, has presence in six circles- Maharashtra, Gujarat, UP East, UP West, Bihar (including Jharkhand) and Andhra Pradesh.
The company last year won spectrum for Rs 4,018 crore to offer mobile phone services in these circles.
Earlier this month, Telenor Group President and CEO Jon Fredrik Baksaas met Commerce and Industry Minister Anand Sharma in Myanmar.
Sharma had assured him that the pending investment issues would be expedited with the relevant authorities.
As per the FDI norms, foreign companies are allowed a maximum of 74 percent stake in a telecom carrier.
First Published: Friday, June 14, 2013, 19:23