The Department of Revenue has opposed Unitech Wireless? proposed Rs 82.5 billion rights issue. Meanwhile, the Ministry of Home Affairs and the Department of Telecommunications (DoT) have asked the company to defer the same.
Nevertheless, the Foreign Investment Promotion Board (FIPB) has asked the Ministry of finance to carefully scrutinise the proposed rights issue. According to an FIPB note, the Cabinet Committee on Economic Affairs is required to provide its opinion on the rights issue, as the initial investment inflow exceeds Rs 12 billion.
The Ministry of Home Affairs? concerns are based on the fact that Telenor operates in countries like Pakistan. Also, the Department of Revenue has expressed concern over the proposed rights issue on grounds that it might lead to an increase in Telenor?s holding in the joint venture. However, the FIPB overruled this, saying that Telenor has given them the undertaking that under no circumstances will it hold more that 74 per cent stake in the joint venture.
