New Delhi Sale of 10 per cent equity in telecom joint venture Hutchison-Essar by the foreign partner to Egypt-based Orascom, that has significant presence in Pakistan and Bangladesh, appears to have raised the hackles of the government with the National Security Advisor M K Narayanan voicing security concerns about the deal.
In a note sent to Telecom Ministry earlier this month suggesting a total review of the FDI policy in the sector, Naraynan said that the with the latest acquisition, the China-Pakistan-Bangladesh-Egypt was making such concerns more 'daunting'.
Sources in Communication Ministry acknowledged the concerns by NSA and said that a review of the FDI policy would be taken up.
Suggesting that the concerned ministries should meet on the issue to adopt a yardstick that would be acceptable and realistic, NSA said that the time had come to take a formal position on this matter and for a comprehensive policy.
Sale of over 10 per cent equity to Orascom by Hutch had promoted Essar to ask government if clearance was required for the deal.
Essar, the single largest equity holder in the mobile major, shot off letters to Prime Minister Manmohan Singh and Telecom Minister Dayanidhi Maran late last month, after it failed in attempts to get a satisfactory answer from Hutchison.
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