New Delhi: Egyptian telecom company Orascom's purchase in Hutch has got the final nod. The Foreign Investment Promotion Board or FIPB has cleared the foreign shareholding of 68 per cent in Hutch Essar.
CNBC-TV18 reports that now with the FIPB's approval, Hutch and Essar will have an indirect and direct foreign shareholding of 68 per cent.
The FIPB is a very crucial body as it represents almost the entire government because secretaries of various ministries are represented in it.
The department of telecom had earlier cleared Orascom's purchase of 19.3 per cent stake in Hutchison telecom international.
The reason that is given is that since the transfer of shares happened outside India and it does not breach the overall 74 per cent FDI ceiling. This deal has already been cleared by the Department of Telecommunication, DoT.
There were reports that security agencies especially the Ministry of Foreign Affairs and IB were extremely circumspect about the entire issue.
Their concern emanates from the fact that Orascom also operates in Pakistan and Bangladesh.
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