Russian govt likely to delay investment in SSTL

NEW DELHI: Telecom service provider Sistema Shyam Teleservices has to wait for funds from Russia, as the Russian government is understood to have delayed its plans to invest over Rs 3,051 crore in the firm, following the 20 per cent stake acquisition in the new telecom operator.

Confirming the move, SSTL spokesperson said, "The decision on investment into SSTL by Russian Federation has been moved to the next government (Russian) meeting, as it is undergoing due process for such investments."

He, however, added that SSTL is rolling out its network and innovative telecom services in India as planned.

Last year, in December, the government had cleared a proposal by the CDMA telecom operator SSTL to sell up to 20 per cent stake to a Russian state entity, which will bring in Foreign Direct Investment worth Rs 3,051 crore.

Sistema-Shyam, a joint venture between Russian telco Sistema and the Shyam Group, operating under the brand name of MTS, is in need of huge funds for its expansion.

Despite having a national licence, currently, it is operating in 11 circles which include Tamil Nadu/Chennai, Kerala, Rajasthan, Kolkata, West Bengal, Bihar/Jharkhand, Delhi, Karnataka, Haryana, Mumbai and Maharashtra.

Sistema-Shyam already has composite foreign holding of 73.71 per cent, Shyam Group holds 23.79 per cent and the remainder is held by minority shareholders.