The Hindu Business Line : DoT to examine security concerns over Orascom deal

The equity sale by the Hong Kong-based Hutchison Telecom International Ltd (HTIL) to Egypt's Orascom is snowballing into another controversy in the telecom sector with the Department of Telecom (DoT) seeking views from telecom operators and various ministries on the security concerns arising from the transaction as raised by the Essar Group. The international deal has indirectly got Orascom a 10 per cent stake in the Indian mobile operating company Hutchison Essar, where the Ruias' promoted Essar Group is the largest shareholder.

Senior government officials said that the issue to be discussed was whether a transaction between two international companies, one of which hold a stake in an Indian cellular company, should come under the scrutiny of Indian authorities or not.

Last week, Essar had shot off letters to the Prime Minister's Office (PMO), Communications Ministry and the Defence Ministry on whether the sale of equity by Hutchison to another foreign firm, Orascom, required government approval.

Essar had pointed out that while the existing guidelines do not specify that indirect purchases through overseas holding companies would require any approvals, "such indirect change of shareholding through a holding company, without the consent of the serious Indian investors in the telecom company, would constitute a serious threat to national security," the Essar Group has said in a letter to the Defence Minister, Mr Pranab Mukherjee.

More Stories on : Foreign Direct Investment | Telecommunications | Security

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
US to hold talks on norms for wheat imports

Birlas submit DoT letters as proof

TRAI issues notice to 5 telecom cos for poor quality of service

SC allows development of Mumbai mill lands

Mumbai builders are a relieved lot now

April-Feb indirect tax collections up 16.2 pc

Subex buys US-based Mantas for $2 m

IRDA framing regulation to track `suspicious transactions'

DoT to examine security concerns over Orascom deal

TRAI freezes cable rates for hotels, restaurants