The Cabinet Committee on Economic Affairs on Wednesday approved foreign direct investment (FDI) worth Rs2,480.92 crore in ATC Telecom Infrastructure Pvt. Ltd. by ATC Asia Pacific Pte. Ltd.
Union minister Prakash Javadekar, who briefed the media on decisions of the Union Cabinet, said the deal takes the total FDI in the company to ₹5,417 crores.
It shows the growing confidence in India’s infrastructure sector and the international community’s faith in India’s growth, the minister said. The deal is for acquiring 12% stake in ATC Telecom Infrastructure for ₹216 a share, the minister said.
India currently allows FDI up to 100% in telecom services sector wherein 49% is permitted under automatic route and anything beyond 49% must seek government approval.
ATC Telecom Infrastructure was set up in March 2004 as Tata Tele Info Limited, a Tata group firm. Over the years, the company’s shareholding underwent changes and accordingly its name too.
The company provides passive telecom infrastructure services to telecom operators pursuant to various approvals granted to it by the Department of Telecommunications.