The Central government on November 25 approved ATC Asia Pacific buying about 12 percent stake in ATC Telecom Infrastructure for Rs 2,480 crore.
With the approval from the Cabinet Committee on Economic Affairs (CCEA), the cumulative foreign direct investment (FDI) of ATC Asia Pacific into ATC Telecom Infrastructure would be Rs 5,417.2 crore.
Speaking at a press conference, Union Minister Prakash Javedekar said, "Today, the Cabinet Committee on Economic Affairs allowed the FDI by ATC Asia Pacific Pvt Ltd of Rs 2,480 crore, Rs 216 per share for the purchase of 12 percent stock of ATC Telecom"
ATC Telecom Infra provides telecommunications infrastructure solutions, as well as offers maintenance and operations services.
The total FDI in ATC Telecom Infrastructure will be Rs 5,417 crore, which is about 98 percent, the minister added.
According to Javedekar, this shows growing confidence in the telecom sector and its infrastructure. "This also suggests that the international community sees India as a robust market, with robust growth," he pointed out.
This move will help improve innovation in the sector, spur economic growth, and shows the shape of things to come, Javedekar said.
Javedekar also said the Cabinet has cleared equity infusion of Rs 6,000 crore by the Centre in NIIF Debt Platform sponsored by National Investment and Infrastructure Fund (NIIF), over the next two years.