The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi on Wednesday approved Rs 2,480.92 crore Foreign Direct Investment (FDI) in ATC Telecom Infrastructure Private Limited. This foreign investment will be done by ATC Asia Pacific Private Limited. Under this deal, 12.32 per cent stake in ATC Telecom Infrastructure will be acquired at Rs 216 per share. Union Minister Prakash Javadekar said that after this deal, the company will get a total FDI of Rs 5,417 crore.
Giving information about the decisions of the cabinet, Union Minister Javadekar said that it is clear from the decision of FDI that confidence in India’s infrastructure sector is increasing. At the same time, the confidence of the international community has also strengthened about India’s growth. With this decision, the flow of foreign investment in India will promote economic development, as well as encourage innovation.
A result of the use of the Put option by Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL) will be foreign direct investment of Rs 2480.92 crore by ATC Asia Pacific Pte Ltd. With this approval, the total FDI of ATC Asia Pacific Pte Ltd (ATC Singapore) to ATC Telecom Infrastructure Pvt Ltd (ATC India) will be Rs 5417.2 crore from the financial year 2018-19 to 2020-21.
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ATC provides telecom infra service
ATC Telecom Infrastructure Pvt Ltd is in the business of providing telecom infrastructure services to telecom operators. The company already has FDI clearance of up to 86.36 percent and with the new approval it will increase to 98.68 percent (purely on dilute basis). The foreign direct investment in Messrs ATC Telecom Infrastructure Pvt Ltd by M / s ATC Asia Pacific Pte Ltd during the financial year 2020-2021 will be Rs 2480.92 crore.
It is known that up to 100 per cent FDI has been allowed in the telecom sector, of which 49 per cent from the automated route and the subsequent part will be through the government.
Source: www.financialexpress.com