Vodafone expects FIPB clearance this month

New Delhi, Mar 15 (UNI) British telecom giant Vodafone today said it expects investment clearance from the Foreign Investment Promotion Board (FIPB) by end of this month, which would formalise one of the largest FDIs in the sector in India.

''We have submitted all the data demanded by the authority and expect the FIPB clearance within the next few weeks,'' Vodafone Chief Executive Officer Arun Sarin said after striking a deal with the Essar Group to secure operational control of the new entity renamed as Vodafone-Essar.

Vodafone-Essar will provide the same services to its Indian clients just as their global customers, Mr Sarin said.

''Once we get approval, we will move forward into the largely untapped rural areas of the country,'' the Vodafone Chief, who arrived in India last night, told reporters here.

On the price strategy, Mr Sarin said it would be very competitive saying that ''whatever it takes, we will do that''.

Vodafone Group Plc will take operational control in its joint venture with the Ruias-owned Essar Group, which owns 33 per cent in India's fourth largest telecom company Hutchison Essar.

''Ravi Ruia will be named as the Chairman of Vodafone-Essar and the Essar Group will continue to be a 33 per cent shareholder in the new entity,'' Mr Sarin said.

The telecom giant said Essar would have an option to sell its 33 per cent shareholding in Vodafone-Essar to Vodafone for five billion dollars.

Mr Sarin and Essar Group Vice Chairman Ravi Ruia today met the IT and Telecom Minister Dayanidhi Maran and briefed him about future plans of their JV.

The two also met the Union Minister for Commerce and Industry Kamal Nath here.

Last month, the UK giant had clinched a deal to acquire 67 per cent controlling stake in Hutch-Essar from Hong Kong based Hutchison Telecom International for 1.1 billion dollars.

UNI