The Cabinet Committee on Economic Affairs has approved a proposal involving foreign direct investment of Rs 2,480 crore by ATC Asia Pacific for purchasing about 12% stock of ATC Telecom.
"Today, CCEA allowed FDI by ATC Asia Pacific Ltd to the tune of Rs 2,480 crore...for purchasing 12 per cent stock of ATC Telecom," Javadekar told reporters after the meeting of the Cabinet.
The investment underlines the growing confidence of investors in India''s telecom sector and its infrastructure, he said.
ATC Telecom Infrastructure is engaged in the business of providing telecom infrastructure services to operators. The company has existing FDI approval up to 86.36% and with this approval it would rise to 98.68%.
The acquisition of 12.32% of the equity share capital of ATC Telecom Infrastructure by ATC Asia Pacific comes as a result of exercise of put option by Tata Tele Services Limited and Tata Sons.