The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the FDI proposal no. 4930 for the acquisition of 12.32% of the equity share capital (on a fully diluted basis) of ATC Telecom Infrastructure Private Limited by ATC Asia Pacific PTE Limited as a result of exercise of put option by Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL).
This would lead to a foreign direct investment inflow of Rs. 2480.92 crore. With this approval, the cumulative FDI of ATC Asia Pacific PTE Limited (ATC Singapore) into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs. 5417.2 crore in financial years 2018-19 to 2020-21.
ATC Telecom Infrastructure Private Limited is engaged in the business of providing telecom infrastructure services to telecom operators. The company provides passive telecom infrastructure services to telecom operators pursuant to various approvals granted to it by the DoT.
The company has existing FDI approval up to 86.36 % and with this approval, it will rise to 98.68% (on a fully diluted basis).
The inflow of this foreign investment to India is expected to spur economic growth as well as foster innovation.
FDI up to 100% is allowed in Telecom Services Sector wherein 49% under automatic route and beyond 49% through government route subject to observance of licensing and security conditions by the licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time.