An FDI worth Rs 2,480.92 crore into ATC Telecom Infrastructure Pvt Ltd by ATC Asia Pacific PTE Limited has been approved by Cabinet Committee on Economic Affairs (CCEA). The FDI will fetch a stake of 12.31 percent for ATC Asia Pacific. “Today, CCEA allowed FDI by ATC Asia Pacific Ltd to the tune of Rs 2,480 crore, for purchasing around 12 percent of ATC Telecom,” said I&B minister Prakash Javadekar while announcing the cabinet’s decision.
The acquisition of 12.32 percent of the equity share capital of ATC Telecom Infrastructure by ATC Asia Pacific comes as a result of exercise of put option by Tata Teleservices Ltd. and Tata Sons, says a report by ET Telecom. With the approval from the CCEA, the cumulative FDI of ATC Asia Pacific into ATC Telecom Infrastructure would become Rs 5,417.2 crore.
Javadekar added that the investment underlines the growing confidence of investors in India's telecom sector and its infrastructure. “This also shows that global community sees India as a robust market with strong growth,” he added.
“ATC India is grateful to the Department of Telecom and CCEA for approving our acquisition of approximately 12% shares of ATC TIPL from TTSL & Tata Sons. This investment reflects our long-standing commitment to India and to the Government’s Digital India mission," Amit Sharma - Executive Vice President and President, Asia, ATC said in a statement.
Since 2007, ATC has invested Rs 24,000 crores in building and acquiring digital telecom infrastructure in India and its portfolio now stands at approximately 75,000 telecom sites supporting all mobile operators throughout the country, Sharma said. 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 percent and with this approval it would rise to 98.68 percent.
A statement released by the government explained that the inflow of foreign investment to India would spur economic growth, and foster innovation. FDI up to 100 percent is allowed in telecom services sector, wherein 49 percent is under automatic route and the rest through government route subject to compliance of licensing and security conditions.
