DoT working on BPL merger nod

NEW DELHI: In what could perhaps change the complexion of the Hutch-Essar court battle, the Department of Telecommunications (DoT) is processing a no-objection (NOC) certificate for the Hutch-Essar merger with BPL Mobile in Mumbai, it is learnt.

The DoT move comes in the wake of the Foreign Investment Promotion Board (FIPB) informing the telecom department about the approval granted to Hutchison-Essar over the changed shareholding pattern in the company.  

Although FIPB had approved the direct and indirect shareholding in Hutch-Essar at a meeting on July 14, DoT was not officially informed about it so far.

“Based on the FIPB minutes of the meeting, DoT is processing the no-objection for Hutch-Essar merger,” said a DoT source. It is learnt that DoT has not detected any violation related to Hutch-Essar’s operations, and therefore a clearance is expected soon.

The issue of merger of Hutch-Essar with BPL Mobile (Mumbai) is with the Bombay High Court now, and the case will come up for hearing on August 10.

Meanwhile, Hutchison Telecom International Ltd, Hong Kong, has said the termination of BPL Mobile Mumbai circle merger deal was wrong.  The company said Hutch Essar is taking all necessary steps and action to pursue completion of the deal.