New Delhi, Feb 28 : The Cabinet on Thursday approved the FDI proposal for Foreign Direct Investment of more than Rs 5000 crore and up to Rs 25000 crore in Vodafone Idea Limited as part of a proposed equity fund raise by way of a rights issue of equity shares or other equity linked securities to eligible shareholders of the company.
The Cabinet also approved to take on record the proposed changes in the indirect foreign investment in the subsidiaries of VIL, which will take place on account of non-residents subscribing to the equity shares in the fund raise, Union Finance Minister Arun Jaitley told reporters here.
The inflow of foreign investment to India will spur economic growth as well as foster innovation, the Minister added.
The FDI up to 100 per cent is allowed in Telecom Services Sector wherein 49 per cent under automatic route and beyond 49 per cent through government route subject to observance of licensing and security conditions by the licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time.
Further, the 100 per cent FDI has been approved in the Company. However, in consideration of the extant FDI Policy and procedure, it is necessary to take the Government approval for FDI beyond Rs 5000 crore even if there is no change in the percentage of foreign/ NRI equity already approved.
Accordingly, the approval has been given Foreign Direct Investment of more than Rs 5,000 crore and up to Rs 25,000 crore in M/s Vodafone Idea Limited (VIL) along with the approval to take on record the proposed change in the indirect foreign investment in the subsidiaries of VIL which will take place on account of non-residents subscribing to the equity shares in the Fund Raise. (UNI)