New Delhi: The government has cleared a
proposal by the CDMA telecom operator Sistema-Shyam to sell up
to 20 per cent stake to a Russian state entity, which will
bring in FDI worth Rs 3,051 crore.
The proposal relates to up to 20 per cent stake sale by
Sistema-Shyam, a joint venture between Russian telco Sistema
and the Kolkata-based Shyam, to the Federal Agency for State
of Property Management, an investment vehicle of the Russian
government.
Sistema-Shyam, operating under the brand name of MTS, is
in immediate need of huge funds for its expansion. Despite
having a national licence, currnetly, it is operating only in
nine circles --Delhi, Kolkata, West Bengal, Rajasthan, Tamil
Nadu, Kerala, Bihar, Jharkhand and Karnataka--and has 13
circles to launch operations.
The company previously has arranged around USD 1 billion
foreign funds and has been trying to arrange more funds
through FDI for this purpose.
Sistema-Shyam already has composite foreign holding of
73.71 per cent. The existing regulation allows only 74 per
cent foreign stake in the telecom sector.
As such, the company has proposed to issue shares to
Indian entities--AT Invofin India and Cellphone Credit and
Securities India--so that sectoral cap is not breached.
PTI
First Published: Wednesday, December 02, 2009, 00:30