Govt Rejects Etisalat's FDI Proposals.

The government has rejected 12 FDI proposals, including telecom company Etisalat DB's plan to transfer a resident's shares to a non-resident, and UTStarcom India Telecom's plan to undertake additional activity in the telecom sector.

Foreign Investment Promotion Board (FIPB), the nodal government body for decisions on foreign investments has deferred the proposal of Etisalat to increase its stake in Etisalat DB, formerly known as Swan Telecom.

The UAE service provider currently holds about 45 per cent stake in the mobile operator, having paid USD 900 million for the holding in September 2008.

The other major shareholders in Etisalat DB are real estate firm DBG Group, which has a 45.73 per cent stake in the company. Etisalat DB and its subsidiary has the Unified Services Access License in 15 circles.

Apart from that, the government has cleared 24 foreign direct investment proposals worth over Rs 2,700 crore.

"Based on the recommendations of the FIPB government has approved 24 proposals of foreign direct investment amounting to Rs 2,727 crore approximately," an official statement said.

Government has also deferred consideration of proposals from 22 companies such as Wireless Business Services, Wireless Broadband Business Services and Telecordia Technologies Inc.

Source : telecomyatra.afaqs.com