The government on Wednesday approved ATC Asia Pacific buying about 12% stake in ATC Telecom Infrastructure for Rs 2,480 crore.
With the approval from the Cabinet Committee on Economic Affairs, the cumulative foreign direct investment of ATC Asia Pacific into ATC Telecom Infrastructure would be Rs 5,417.2 crore.
Briefing reporters after a meeting of the Cabinet, Information and Broadcasting Minister Prakash Javadekar said the investment underlines the growing confidence of investors in India's telecom sector and its infrastructure.
"Today, CCEA allowed FDI by ATC Asia Pacific Ltd. to the tune of Rs 2,480 crore, for purchasing 12% stock of ATC Telecom," Javadekar said.
This also shows that global community sees India as a robust market with strong growth, he added.
ATC Telecom Infrastructure is engaged in the business of providing telecom infrastructure services to operators. The company has existing FDI approval up to 86.36% and with this approval it would rise to 98.68%.
The inflow of foreign investment to India will spur economic growth, and foster innovation, an official release said.
The acquisition of 12.32% of the equity share capital of ATC Telecom Infrastructure by ATC Asia Pacific comes as a result of exercise of put option by Tata Tele Services Limited and Tata Sons.
FDI up to 100% is allowed in telecom services sector, wherein 49% under automatic route and beyond 49% through government route subject to compliance of licensing and security conditions.
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