DIPP is considering Idea's proposal for 100% FDI limit

The nodal agency for FDI policy, Department of Industrial Policy and Promotion (DIPP) is reportedly considering Idea Cellular Ltd's proposal to allow up to 100 percent foreign direct investment in the company, PTI reported.

The merger has been already approved by NCLT, Sebi, and CCI and merged entity will have 410 million customers and nearly 42 percent customer market share (CMS) and nearly 37 percent revenue market share (RMS).

In fact, Department of Telecom (DoT) is waiting for Department of Industrial Policy and Promotion to give go-ahead for increasing the foreign direct investment (FDI) limit in Idea Cellular to 100 percent.

"We have received the proposal from the Department of Telecommunications. As the department has added a condition in the proposal, the matter has been referred to the DIPP. It is under consideration of the department," PTI quoted Government official.

Another source said that "Only FDI clearance for Idea is pending before the proposed merger with Vodafone (India) can go through."

Meanwhile, there is also one report which says that the merger may lead to massive job losses.

To recall, Idea Cellular and Vodafone Group Plc announced the proposed leadership team of the combined business, that will have Kumar Mangalam Birla as the non-executive Chairman, while Balesh Sharma (currently Chief Operating Officer of Vodafone India) will be the CEO and he will be responsible for the combined business strategy and its execution as well as driving integration.

The existing leadership teams of Idea Cellular and Vodafone India will continue to manage their separate businesses and be accountable for each company's operational performance until the merger becomes effective.

It is only upon completion of the merger that the two businesses will cease to operate as distinct and competing entities. Chief Financial Officer (CFO) at Idea, Akshaya Moondra will take charge as CFO of the new company.

Current Deputy managing director of Idea, Ambrish Jain will take charge as Chief Operating Officer of the new company.

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However, Sunil Sood will join the Vodafone Group AMAP Leadership Team and also help governance through Board memberships. The Aditya Birla Group intends to nominate Himanshu Kapania as the non-executive Board member of the merged entity.