The Department of Telecommunications? (DoT) has written to the Foreign Investment Promotion Board (FIPB) stating that it should first address pending issues before approving Uninor?s rights issue.
Prior to this, Telenor had approached the FIPB for raising funds of about Rs 12 billion through a rights issue to support its operations in the country. However, DoT, in its letter to FIPB, has stated that it should first settle issues related to Telenor?s legal notice issued against the government for cancellation of its 2G licences.
It has advised FIPB to approve the rights issue only after Telenor clears security concerns and meets the foreign direct investment guidelines. DoT also wants the FIPB to examine Telenor?s proposal for amalgamation of seven of its subsidiaries.
