The Hindu Business Line : Orascom keen to invest in India

India presence
Orascom holds nearly 10 per cent stake in Indian cellular mobile venture Hutchison Essar through its holding in Hutchison Telecom International Ltd.
Orascom's investments in Hutchison Essar had created concerns among security agencies because the company also has presence in Pakistan.

New Delhi , Dec. 16

Egyptian telecom major Orascom on Saturday said it was open to pick up direct stake in Indian telecom companies if there is clarity over issues relating to foreign direct investment policy and security related concerns raised by agencies in India.

Mr Naguib Sawiris, Chief Executive Officer, Orascom said, "We don't mind picking up direct stake in Indian telecom companies, provided there is a clarity on the FDI and security issues." Orascom holds nearly 10 per cent stake in Indian cellular mobile venture Hutchison Essar through its holding in Hutchison Telecom International Ltd.

Mr Sawiris, who is in India along with the Egyptian Foreign Minister, Mr Ahmed Aboul Gheit, had earlier told Business Line that Orascom was keen to increase its presence in India but could not find a suitable domestic partner.

Orascom's investments in Hutchison Essar had created concerns among security agencies because the company also has presence in Pakistan. As per the FDI norms in India, investments from unfriendly countries are to be monitored. Mr Sawiris expressed concern with Indian security agencies calling Orascom as a security threat to India.

"A country which is looking for $300-400 billion investment should not club security with investments. It is a dangerous mix. Our company is no security hazard to India just because we operate in Pakistan. The fact is that Hutchison-Essar is managed by Indians. When you have $10-15 billion investment in this country, by virtue of that you become a protector of this country."

Mr Ahmed Aboul Gheit said that there should be no hurdles for Egyptian companies as Egypt welcomes Indian companies. Mr Gheit said he would take up the issue with India.

"In Egypt we have direct investment from India and we are hopeful that no obstacle should be put for companies coming to make direct investment in India," Mr Gheit said after the trade meeting with FICCI.

On reports of Orascom bidding for Hutch's stake in Hutchison Essar, Mr Sawiris said that there was too much speculation.

"I am already a shareholder in HTIL and an indirect owner of Indian assets here. I am happy to be what I am," Mr Sawiris said.

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