Business Daily from THE HINDU group of publications
Friday, Sep 01, 2006
Business Daily from THE HINDU group of publications Friday, Sep 01, 2006 |
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Info-Tech
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Regulatory Bodies & Rulings FIPB defers Essar proposal to recast foreign holding in Hutch Essar Our Bureau
New Delhi , Aug. 31 The Foreign Investment Promotion Board (FIPB) has deferred the proposal from Essar Group seeking to restructure the foreign holdings in the telecom joint venture Hutchison Essar Ltd (HEL). Essar had sought FIPB permission to increase the equity held through its foreign subsidiaries by 6.26 per cent to 22.04 per cent. The FIPB has sought more clarification on the holding company and has deferred the proposal till the next meeting. Currently, the total foreign holding (direct and indirect) in HEL is around 68 per cent. If the new proposal is approved, the foreign equity will go up to 74 per cent. The entire 22.04 per cent of foreign equity component within Essar's 33.01 per cent is being proposed to be routed through Essar Communications, a Mauritius-based offshore holding company of the Essar Group. The move is being seen by analysts as an attempt by the Ruias-romoted Essar to keep off foreign operators and partners from acquiring more equity in Hutchison Essar. Currently, Indian telecom operators are permitted FDI up to 74 per cent.
More Stories on : Regulatory Bodies & Rulings | Telecommunications | Restructuring
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