The government has deferred a decision on the proposal by Norwegian telecom firm Telenor to increase its stake in Unitech Wireless, the telecom arm of realty major Unitech, to 74 per cent, as the home ministry sought more time to examine the deal.
Telenor, which acquired a 49 per cent stake in Unitech Wireless, is now waiting for clearance from the Foreign Investment Promotion Board (FIPB) to increase this to 67 per cent.
Telenor Asia needs FIPB permission to increase its direct and indirect shareholding in Unitech Wireless up to 74 per cent. The company had proposed to complete the four-phase deal by end-2009.
The government approved 23 foreign investment proposals worth about Rs565,000 crore ($120 million), according to an official statement.
It deferred a decision on 12 other FDI proposals as well.
These included Basell Polyolefins' proposal for carrying out wholesale trading and manufacturing activities; Enport Holding's proposal to allot and issue shares or convertible debentures to the Indian companies and/or their respective affiliates and to invest in other companies engaged in such business falling under the same sector; Esys Information Technologies' proposal to make an amendment in the FC approval by including some more trading/manufacturing activities; India Rizing Fund's proposal to amend the FC approval; a proposal by Nagarajuna Construction Ltd to amend the FC approval; Credit Information Burco (I) Ltd's proposal to acquire equity shares in credit information companies; a proposal by BGS Smartcard Systems (I) Pvt Ltd to amend the FC apparoval; Sandvik Asia Ltd's proposal to induct FDI to carry out the activity comprising tooling, mining and construction and material technology; Ortus Infratel and Holdings Pvt Ltd's proposal for induction of FDI in the companies engaged in telecom infrastructure providers (category I) and conversion of operating company into operating-cum-holding company to make downstream investments; United Breweries (Holdings) application for ex-post facto approval for (i) issue of fully convertible equity warrants, (ii) for allotment of fully paid up equity shares on conversion of convertible equity warrants, and (iii) for acting an operating cum investing company for making downstream investment; Quippo Telecom Infrastructure's proposal for conversion of operating company into operating-cum-holding company to make downstream investments and demerger of passive telecom infrastructure business approved by the high court of Andhra Pradesh; and a proposal by Eros International Media Pvt Ltd, Mumbai for ex-post-facto approval for the investment already made by way of purchase of shares.