The Norwegian Minister for Trade and Industry, Mr Trond Giske, today took up with the Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, the issue of Telenor's troubled investment in its Indian telecom unit.
Telenor, majority owned by the Norwegian Government, is the controlling stakeholder in domestic telecom operator, Uninor.
Uninor's 22 pan-India 2G licences were among the 122 such permits cancelled by the Supreme Court in February. The apex court had termed the licences, issued by previous Telecom Minister, Mr A Raja, as illegal.
“We had a constructive and friendly dialogue (with Mr Ahluwalia). We presented our case and now it is up to the Indian Government to take a call. If this $3-billion investment fails, this will be the biggest loss for a Norwegian foreign investment ever,” Mr Giske said.
The fate of this investment will decide the course of future investments by Norway into India, he added. Mr Giske was accompanied by Mr Fredrik Baksaas, CEO, Telenor, and Mr Sigve Brekke, MD of Uninor.
Mr Giske's meeting with Government officials comes after industry regulator Trai's recommendations last month caused a furore within the sector, as it set too high a reserve price, called for the auction of too little spectrum and imposed tough rollout obligations.
“As it stands, as a newcomer it will be almost impossible to continue operations. We respect the Government's right to have a decent price for natural resources, but they have to find a middle ground to incentivise investments,” Mr Baksaas said.