No objection to Vodafone-HTIL deal: DoT
The Communication Ministry is understood to have no objection to Vodafone's proposed acquisition of equity in Hutch-Essar and feels the Finance Ministry is best equipped to look into FDI aspects in the deal.
By PTI |
NEW DELHI: The Communication Ministry is understood to have no objection to Vodafone's proposed acquisition of equity in Hutch-Essar and feels the Finance Ministry is best equipped to look into FDI aspects in the deal.
DoT is believed to have communicated these views to the Foreign Investment Promotion Board (FIPB), which is seeking clarification from HTIL and other shareholders on the equity structure in the joint venture, particularly in the wake of complaint by some MPs.
Besides, the Delhi High Court too has asked FIPB to wind up the scrutiny of Hutch-Essar within two months after an NGO Telecom Watchdog alleged breach of FDI norms by outgoing foreign partner Hutchison Telecom (HTIL). The ultimate decision maker on FDI limit in companies and its breach is the Ministry of Finance and the FIPB.
DoT officials said the Communication Ministry was only playing the role of a nodal ministry by issuing clarifications whenever sought, while agreeing that the Finance Ministry should take the final call.
"We don't decide on FDI limit. Companies raise and reduce the FDI level on their own within the permissible limits and then approach FIPB for approval or apprising. They also apprise DoT as FIPB seeks the nodal ministry's views while approving the proposal in normal cases. Allegations or under normal course, the final call is taken by the by FIPB," a senior DoT official said.
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"It is up to the Board to take a final decision on the allegation of breach of norm, if any", the DoT official said.Start a SIP with as low as ₹500 with ET Money App!
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