The government on Wednesday said it has cleared Norwegian telecom firm Telenor's proposal to invest Rs 1,000 crore (Rs 10 billion) in a joint venture company in the telecom sector.
Telenor Mobile Communication AS' application "to set up a JV company in telecom sector" involving Rs 1,000 crore FDI inflow has been cleared by the Foreign Investment Promotion Board (FIPB), the Finance Ministry said in a statement.
Telenor had approached the FIPB for raising its stake in its Indian subsidiary Telewings Communications through which it participated in spectrum auction conducted in November 2012 for fresh purchase of airwaves.
"In accordance with procedure, Telenor Group have applied for FIPB approvals to allow us to invest further in India and increase our ownership from 49 per cent to 74 per cent in Telewings Communications Services Private Limited," the company had said earlier.
Telenor's India unit, which operates under the brand name Uninor, has presence in six circles of Maharashtra, Gujarat, UP East, UP West, Bihar (including Jharkhand) and Andhra Pradesh.
However, the company is in process to transfer Uninor's business under new entity Telewings Communications through which it participated in spectrum auction and won airwaves for Rs 4,018 crore (Rs 40.18 billion) to offer mobile phone services in these circles.
Telenor has signed Lakshdeep Investments and Finance as the partner to form Telewings Communications as present FDI norms allow holding of up to 74 per cent stake in a telecom services company.