New Delhi (NVI): The Union Cabinet today approved the proposal of foreign direct investment (FDI) of Rs 2480.92 crore in ATC Telecom Infrastructure Private Limited by ATC Asia Pacific Pte Ltd for acquisition of 12.32 per cent of the equity share capital.
The decision was announced by Union Minister Prakash Javadekar in a Cabinet meeting chaired by Prime Minister Narendra Modi.
An official statement said that, “With this approval the cumulative FDI of ATC Asia Pacific PTE Limited into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs 5417.2 crore in financial years 2018-19 to 2020-21.”
However, the acquisition is being done as a result of exercise of option by Tata Tele Services Ltd (TTSL) and Tata Sons Pvt Ltd (TSPL).
ATC Telecom Infrastructure Private Limited is currently engaged in the business of providing telecom infrastructure services to telecom operators, the statement said.
The company has existing FDI approval up to 86.36 per cent and with this approval it will rise to 98.68 per cent, on a fully diluted basis and the inflow of foreign investment to India will spur economic growth as well as foster innovation.
It is to be noted that FDI up to 100 per cent is allowed in telecom services sector, out of which, 49 per cent under automatic route and beyond 49 per cent through government route subject to observance of licensing.
Also, security conditions by the licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time.
Furthermore, the company is also engaged in the business of providing passive telecom infrastructure services to telecom operators pursuant to various approvals granted to it by Department of Telecommunications, the statement added.