CCEA to look at Unitech, Telenor deal

NEW DELHI, INDIA: India's Unitech Wireless, a unit of realty firm Unitech, said during the weekend that its application to increase foreign shareholding up to 74 per cent has been recommended for consideration of the Cabinet Committee on Economic Affairs (CCEA) by the Foreign Investment Promotion Board (FIPB).

The decision was taken in the FIPB meeting held on August 21, 2009; the outcome of which has now been published.

In line with the process for foreign investments of over Rs 600 crore; the FIPB’s recommendation is expected to be considered by the Cabinet Committee on Economic Affairs for approvals, Unitech said in a statement.

Unitech Wireless is 49 per cent owned by Telenor. The two partners have an agreement to raise the Norwegian firm's stake to 67.25 per cent, and have sought approval for foreign ownership of up to 74 per cent, the maximum allowed under Indian law.

“India has a strong, forward looking and investment friendly policy environment. We continue to receive invaluable support from the Government and are optimistic of a favorable outcome that allows the Telenor Group to raise its holding in Unitech Wireless,” the statement added.