The Cabinet Committee on Economic Affairs yesterday approved the FDI approval for acquisition of 12.32 percent of the equity share capital of ATC Telecom Infrastructure Private Limited by ATC Asia Pacific PTE Limited as a result of the exercise of put option of Tata Teleservices and Tata Sons Private Limted.
The FDI approval will lead to an inflow of Rs 2480.92 crore making the cumulative FDI of ATC Asia Pacific PTE Limited into ATC Telecom Infrastructure Private Limited at Rs 5,417.2 crore between FY 19 and FY 21. ATC Telecom earlier had FDI approval up to 86.6 percent which is now set to rise to 98.69 percent with the approval of the Cabinet yesterday.
ATC Telecom is involved in the business of providing passive telecom infrastructure services to telecom operators pursuant to various approvals granted to it by the Department of Telecommunications.
The telecom sector is open to 100 percent FDI wherein 49 percent comes through the automatic route while beyond 49 percent through government route subject to observance of licensing and security conditions by the licensee. The inflow of foreign investment in India will spur economic growth.