Cabinet clears FDI of up to Rs 25,000 cr in Vodafone Idea via rights issue

New Delhi, Feb 28 (IANS) The Union Cabinet on Thursday approved the proposal for Foreign Direct Investment of more than Rs 5,000 crore and up to Rs 25,000 crore in Vodafone Idea as part of the proposed equity fund raise through rights issue.It also approved to take on record the proposed changes in the indirect foreign investment in the subsidiaries of Vodafone Idea, which will take place on account of non-residents subscribing to the equity shares in the fund raise, an official statement said.According to the statement, "the inflow of foreign investment to India will spur economic growth as well as foster innovation".FDI up to 100 per cent is allowed in telecom services sector wherein 49 per cent is under automatic route and beyond 49 per cent through government route. The 100 per cent FDI has been approved in the company, it said. However, it is necessary to take the government approval for FDI beyond Rs 5,000 crore even if there is no change in the percentage of foreign equity already approved.
--IANS rrb/vd