New Delhi [India], November 25 (ANI): The Union Cabinet has approved FDI of Rs 2480.92 crore in ATC Telecom Infrastructure Pvt Ltd by ATC Asia Pacific Pvt Ltd.
"The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the FDI proposal no. 4930 for acquisition of 12.32 per cent of the equity share capital (on a fully diluted basis) of M/s ATC Telecom Infrastructure Private Limited by M/s ATC Asia Pacific PTE Limited as a result of exercise of put option by M/s Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL). This would lead to foreign direct investment inflow of Rs 2480.92 crore," read a press statement from Cabinet Committee on Economic Affairs (CCEA).
With this approval the cumulative FDI of ATC Asia Pacific PTE Limited (ATC Singapore) into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs 5417.2 crore in financial years 2018-19 to 2020-21, as per the statement.
The statement read, "M/s ATC Telecom Infrastructure Private Limited is engaged in the business of providing telecom infrastructure services to telecom operators. The company has existing FDI approval up to 86.36 per cent and with this approval it will rise to 98.68 per cent (on a fully diluted basis)."
"Foreign Direct Investment would be Rs 2480.92 crore in ATC Telecom Infrastructure Private Limited by ATC Asia Pacific PTE Limited during FY 2020-2021 and cumulatively will be Rs 5417.2 crore considering the approval granted in FDI proposal no. 4854 and 4860 in FY 2018-19," it said.
According to the statement, the inflow of foreign investment to India will spur economic growth as well as foster innovation. FDI up to 100 per cent is allowed in telecom services sector wherein 49% 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.
The company is engaged in the business of providing passive telecom infrastructure services to telecom operators pursuant to various approvals granted to it by Department of Telecommunications, the statement added. (ANI)