The Cabinet Committee on Economic Affairs today gave its approval to the proposal of M/s. Aditya Telecom Limited, subject to the conditions recommended by FIPB, to:

(a) The issue and allotment of up to 25,00,000 compulsorily convertible preference shares of a face value of Rs.10/- each of M/s. Aditya Birla Telecom Limited to P5 Asia Holding Investments (Mauritius) Limited for an aggregate consideration of the rupee equivalent of US D 640,000,000 (INR 2704.21 crore approximately), constituting 20% of the share capital of the company on a fully diluted basis.

(b) The enhancement of the foreign investment limit in M/s. Aditya Birla Telecom Limited to 74%

(c) M/s. Aditya Birla Telecom Limited to act as an "operating cum holding company" and make downstream investments from time to time as under:

(i) To acquire 19047 equity shares of Rs.10/- each representing 16% of the total paid up equity share capital of M/s. Indus Towers Limited, a company which is engaged in the provision of passive infrastructure (i.e. towers) in the telecom sector.

(ii) M/s. Aditya Birla Telecom Limited also holds 50,000 equity shares of Rs.10 each representing 100% of the equity share capital of M/s. Idea Cellular Towers Infrastructure Limited a company registered as an Infrastructure Provider - I with the Department of Telecommunication. The approval in this regard is post facto.

The approval would result in FDI amounting to Rs.2704.21 crore (approx) in the country.

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AD/LV

Foreign investment approval: allotment to Mauritius investor with enhanced FDI ceiling and authorised downstream infrastructure investments. Approval authorised the issue of compulsorily convertible preference shares to P5 Asia Holding Investments (Mauritius) Ltd, increasing the permissible foreign investment ceiling in Aditya Birla Telecom Ltd and designating the company as an operating cum holding company permitted to make downstream investments, including a minority acquisition in Indus Towers Ltd and recognition of post facto full ownership of Idea Cellular Towers Infrastructure Ltd, subject to FIPB conditions.