Ministry of Home Affairs in India may give clearance to Vodafone's Rs 10,141 cr FDI proposal

Ministry of Home Affairs in India may give clearance to Vodafone's Rs 10,141 cr FDI proposalA senior home ministry official said Vodafone Plc's plan to hike its stake in the Indian arm to 100% is likely to go through with the intelligence agencies giving a nod to the proposal.

He said, "The intelligence agencies have cleared the proposal and our comments would be sent for the next (Foreign Investment Promotion Board) meeting." Besides FIPB, Vodafone also requires the approval of the Cabinet Committee on Economic Affairs because the planned investment exceeds Rs 1,200 crore.

The Foreign Investment Promotion Board (FIPB) had last week deferred Vodafone's proposal as the Ministry of Home Affairs (MHA) was yet to give its comments.

The date for the next meeting of the FIPB, which is headed by Economic Affairs Secretary Arvind Mayaram, has not yet been finalised.

CGP India Investments Ltd, an indirect Mauritian subsidiary of Vodafone International Holdings BV, had sought FIPB approval to buy the stake held by minority shareholders in Vodafone India Ltd.

The UK-based telecom major holds a 64.38 per cent stake in the Indian unit.

The government softened rules in August to permit foreign telecom companies to own 100 per cent of their businesses in India. Previously, the FDI cap in this particular sector was 74 per cent.