Vodafone director meets govt top brass
In a related development, Hutchison International shares dropped 4.4% to a five-month to touch HK$ 14.76 at the Hong Kong Stock Exchange.
By TNN |
NEW DELHI: Vodafone director (external relations) Mathew Kirk on Wednesday met commerce secretary GK Pillai and department of telecom (DoT) secretary D Mathur, even as both sides said the meetings were ‘routine’ exercises. Interestingly, this comes just a day before the Foreign Investment Promotion Board (FIPB) takes up Vodafone’s application for picking up a controlling stake in India’s fourth largest cellular company, Hutchison Essar. While it could not be independently confirmed, Mr Kirk is believed to have raised the issue of FIPB clearance with both Mr Pillai and Mr Mathur.
Sources said FIPB may possibly defer Vodafone’s application for the second time, as it was yet to receive “conclusive” replies from the finance ministry on the controversial issue of foreign holding in Hutch Essar (HEL). FIPB had first taken up Vodafone’s application last week, but did not clear it as the as the RBI had not submitted its report on the issue. The RBI in its reply to the finance ministry’s query had said the 12.26% shareholding of HEL MD Asim Ghosh and Max India chairman Analjit Singh in HEL amounted to violations of the Foreign Exchange Management Act and the country’s FDI norms. Following this, the finance ministry has sought the law ministry’s opinion on Mr Ghosh’s and Mr Singh’s stake.
Sources confirmed that the FIPB would take up the Vodafone application for consideration only after receiving the law ministry’s opinion, while adding that the latter’s report was unlikely to be available before Thursday’s meet. Sources also added that stakeholders representing the companies concerned were called for a meeting at the finance ministry today to explain the equity structure of HEL.
In a related development, Hutchison International shares dropped 4.4% to a five-month to touch HK$ 14.76 at the Hong Kong Stock Exchange.
Vodafone CEO Arun Sarin on Monday told ET that the company was not concerned over the delay in getting FIPB clearance as the deal was barely a month old.
“Maybe if this question was asked six months from now, I would say that it is disappointing. The FIPB has to be given time, and I am fine with it. At the end of the day, I want the FIPB, the ministry of finance, the telecommunications ministry, the industry ministry and the Prime Minister to say that you are welcome here (in India). The last thing we want to do is show up one fine day and then people ask, ‘hey hang on, which door did you come from, was it the front door back door or side door?” Mr Sarin had said.
Sources said FIPB may possibly defer Vodafone’s application for the second time, as it was yet to receive “conclusive” replies from the finance ministry on the controversial issue of foreign holding in Hutch Essar (HEL). FIPB had first taken up Vodafone’s application last week, but did not clear it as the as the RBI had not submitted its report on the issue. The RBI in its reply to the finance ministry’s query had said the 12.26% shareholding of HEL MD Asim Ghosh and Max India chairman Analjit Singh in HEL amounted to violations of the Foreign Exchange Management Act and the country’s FDI norms. Following this, the finance ministry has sought the law ministry’s opinion on Mr Ghosh’s and Mr Singh’s stake.
Sources confirmed that the FIPB would take up the Vodafone application for consideration only after receiving the law ministry’s opinion, while adding that the latter’s report was unlikely to be available before Thursday’s meet. Sources also added that stakeholders representing the companies concerned were called for a meeting at the finance ministry today to explain the equity structure of HEL.
In a related development, Hutchison International shares dropped 4.4% to a five-month to touch HK$ 14.76 at the Hong Kong Stock Exchange.
Vodafone CEO Arun Sarin on Monday told ET that the company was not concerned over the delay in getting FIPB clearance as the deal was barely a month old.
“Maybe if this question was asked six months from now, I would say that it is disappointing. The FIPB has to be given time, and I am fine with it. At the end of the day, I want the FIPB, the ministry of finance, the telecommunications ministry, the industry ministry and the Prime Minister to say that you are welcome here (in India). The last thing we want to do is show up one fine day and then people ask, ‘hey hang on, which door did you come from, was it the front door back door or side door?” Mr Sarin had said.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
