New Delhi: The Communication Ministry is understood to have no objection to Vodafone's proposed acquisition of equity in Hutch-Essar and feels the Finance Ministry is best equipped to look into FDI aspects in the deal.
DoT is believed to have communicated these views to the Foreign Investment Promotion Board (FIPB).
DoT officials said the Communication Ministry was only playing the role of a nodal ministry by issuing clarifications whenever sought, while agreeing that the Finance Ministry should take the final call.
FIPB is seeking clarification from Hutchison Telecom (HTIL) and other shareholders on the equity structure in the joint venture, particularly in the wake of complaint by some MPs.
However, the Delhi High Court has asked FIPB to wind up the scrutiny of Hutch-Essar within two months after an NGO Telecom Watchdog alleged breach of FDI norms by outgoing foreign partner HTIL.
The ultimate decision maker on FDI limit in companies and its breach is the Ministry of Finance and the FIPB.
"We don't decide on FDI limit. Companies raise and reduce the FDI level on their own within the permissible limits and then approach FIPB for approval or apprising. Allegations or under normal course, the final call is taken by the by FIPB," PTI quoted a senior DoT official as saying.
"It is up to the Board to take a final decision on the allegation of breach of norm, if any", the official added.
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