Heard,DoT awaits FDI clearance to merge Idea with Vodafone

Heard,DoT awaits FDI clearance to merge Idea with Vodafone

Aanandini Devi Current Affairs, on : April 16, 2018

Current Affairs

DoT approached DIPP to comment for merger of Idea with Vodafone.Idea & Vodafone both will have to clear their dues before merger. DoT is waiting for DIPP for clearance to raise FDI limit in Idea to 100% (Idea has applied for it) before approving merger & for sale of tower to ATC & Vodafone.They will have highest subscribers of 410 million with 35% market share 2nd largest spectrum holding of 1,850 megahertz in India & will be at top position.Debt of new co. will be Rs. 1.1 lakh cr. Rental for 6,300 mobile sites will be synced for merged co. in 2 yrs as both Idea & Vodafone are paying separately.

About two weeks back Department of Industrial Policy and Promotion (DIPP) was approached by Department of Telecom (DoT) to comment (still to hear from it) for merger of Idea Cellular (Aditya Birla group firm) with Vodafone (India).

Idea and Vodafone both will have to clear their respective dues before merger,as final amount is not calculated by DoT. DoT is waiting for DIPP for clearance to raise the foreign direct investment (FDI) limit in Idea Cellular to 100 per cent (Idea Cellular has applied for it) before approving this merger. FDI clearance for Idea is needed before merger and FDI limit has to be raised for clearing both the deals of Idea -- sale of tower to ATC and Vodafone merger.

As per the standard operating procedure (SOP) for processing FDI proposals, all the ministries concerned are required to submit their comments within 4 weeks of the proposal, if they don't it will be assumed that ministries or departments have nothing to say. Approval from the Home Ministry is also a must for FDI clearance in telecom sector, which should be granted within six weeks. In case it is unable to provide its comment within six weeks, it has to tell as to when will it comment. Ref. : http://www.business-standard.com/article/economy-policy/dot-awaits-fdi-clearance-for-idea-to-approve-merger-with-vodafone-sources-118041500208_1.html --- Dated: Apr'15,2016.


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