Telenor gets nod to hike stake in Telewings

The Foreign Investment Promotion Board (FIPB) on Friday cleared Norway-based Telenor’s proposal to hike stake in its Indian entity, Telewings Communications, to 74% from 49% now. “Telenor proposal has been approved,” said economic affairs secretary Arvind Mayaram, who heads the FIPB.

As per the company’s proposal, the foreign direct investment (FDI) in the new joint venture is projected to be over Rs 1,500 crore.

The board had earlier deferred Telenor’s proposal twice following concerns raised by the Ministry of External Affairs over the firm’s name being involved in the 2G spectrum scam.

“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% to 74% in Telewings Communications Services Private Limited. We await the formal communication of this application from the Indian Government,” the company said in a statement.

Telenor had entered the Indian market in 2009 through a joint venture with Unitech group. Telenor held over 67% share in the venture. However, the relationship soured especially after Uninor’s licences got cancelled by a Supreme Court decision in 2012.