According to reports, Vodafone intends to increase its stake in its Indiansubsidiary following the removal of a 74 per cent cap on investment byforeign firms in telecoms.
NEW DELHI – Britain’s VodafoneGroup Plc has indicated that it will investmore than $2 billion in India following agovernment decision to allow foreigncompanies to fully own local carriers,Telecommunications minister Kapil Sibalsaid on Tuesday. “Vodafone is bringing inmore than a couple of billion dollars,”Sibal told Reuters in an interview. “Theywill bring in investment and take advantageof the 100 per cent FDI that is nowin place.” Vodafone intends to increase itsstake in its Indian subsidiary following theremoval of a 74 per cent cap on investmentby foreign firms in telecoms, asource told Reuters earlier this month.Sibal gave no further details of Vodafone’splans, and a company spokesman inLondon was not immediately available tocomment. Sibal said the governmentwants consolidation in India’s 12-playertelecoms market, and hopes to allow dealsbetween carriers with a combined marketshare of up to 60 percent in new mergerand acquisition rules expected by the endof this month.He also said it was “possible” that the governmentcould hold another auction ofthird-generation (3G) spectrum, whichwould be the first since 2010, but he gaveno timeline for this.The government plans to auction 4G airwavesin the 700 megahertz band in “ayear or so”, he added.
