TIL Desk/Business/New Delhi/ The telecom ministry is the competent authority to take the final call on Idea Cellular Ltd’s proposal for infusing 100 per cent foreign direct investment (FDI) in the company, Commerce and Industry Minister Suresh Prabhu has said. The Department of Telecom (DoT) has put some condition while seeking views of the Department of Industrial Policy and Promotion (DIPP) on the proposal.
“The matter is completely in the domain of the line ministry. We have already clarified. No need of our approval,” Prabhu told. It was communicated to DoT that they are the competent authority to deal with the proposal, he said. “We have sent back (the proposal) immediately. We have stated that it is for you to decide,” he said, adding that tax liabilities do not constitute additional condition.
Idea’s proposal assumes significance against the backdrop of pending merger with Vodafone India to form the country’s largest telecom operator. The FDI policy allows an overseas firm to buy up to 49 per cent stake in an Indian telecom company under automatic approval route. But the government approval is required for stake above 49 per cent.
