The Hindu Business Line : ByCell Telecom FDI proposal cleared

New Delhi, Feb 13 ByCell Telecommunications India’s FDI proposal has finally made it past the Foreign Investment Promotion Board (FIPB). Having been deferred earlier on “security” grounds, the proposal forms part of the 25 clearances accorded by the Finance Minister, Mr P. Chidambaram.

The proposal by the subsidiary of Swiss-based ByCell Holdings AG entails infusion of additional investments to the tune of Rs 1,950 crore ($500 million) into India to offer GSM-based cellular telephony services on a pan-India basis over the next 3-5 years and increase the paid-up capital of the company. The proposal of the company had come under scanner after the Prime Minister’s Office received certain complaints that the identities of the owners were not known. The Ministry of Home Affairs had, thereafter, sought more time to go through the details of the firm and its ownership, resulting in the proposal being held up.

ByCell Holdings had originally submitted a proposal in November 2005 for foreign collaboration for offering GSM-based cellular services in five sectors, for which it bagged FIPB clearance in January 2006. Following the nod, a joint venture company was established in the country under the name ByCell Telecommunications India, wherein BitCorp Pvt Ltd, an Indian company, was inducted as a partner. The board of directors of ByCell Telecommunications India, in conjunction with ByCell Holding AG and BitCorp, had subsequently decided to apply for UAS licences for other circles to enable the company to become a pan-India operator.

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