By IANS,
New Delhi : Foreign investor sentiments will not be affected in the long term, Communications Minister Kapil Sibal said Wednesday in the context of the recent Suprme Court verdict on telecom licences, even as Bahrain-based Batelco announced its exit from India.
Asked if the existing scenario following the Supreme Court verdict cancelling 122 telecom licences will harm investments, Sibal replied that short-term investor sentiments may be affected but in the long term they would remain bullish on the Indian market.
“If you talk about long term, no! In short term, yes! People are interested in India and they will come to India,” Sibal said at an event being held here.
The development comes as the recent Supreme Court verdict cancelling 122 telecom licences claimed its first casualty. Bahrain-based Batelco Wednesday announced its exit from India, selling its stake in mobile firm STel.
STel, which had acquired licences to operate in six circles including Odisha, Bihar and Himachal Pradesh, is a joint venture between Batelco and Sky City Foundation, owned by former Aircel promoter and serial entrepreneur C. Sivasankaran.
The agreed time frame for completion of the stake sale is by the end of October 2012.
The Supreme Court has given all the affected firms four months to shut shop and asked the government to auction the freed spectrum.
Another telecom operator which has also hinted at exiting India business, Uninor’s parent firm Telenor has, however, said it would fight for its rights.
Uninor’s case has also been taken up at a diplomatic level by Norway. The country’s IT minister Tuesday met Communications Minister Kapil Sibal.
When asked if Russian Communications Minister Igor Shchyogolev has sought an appointment with him, Sibal said: “So far, no appointment has been sought.”
Shchyogolev is reported to visit India to express the country’s concern over its investments in the Indian firm, Sistema Shyam Teleservices (SSTL).
SSTL, a joint venture between Russia’s Sistema and India’s Shyam Group, which provides its services under the MTS brand name, has also said that it reserves the right to protect its interests by using all available judicial remedies and was mulling the option of filing a review petition in the apex court.
Sistema holds a 56.68 percent stake in the venture, while the Russian government holds 17.14 percent and the Shyam Group of India has another 23.98 percent. The remaining 2.2 is publicly owned.