The telecom ministry is the competent authority to take the final call on Idea Cellular Ltd’s proposal for infusing 100 per cent foreign direct investment (FDI) in the company, Commerce and Industry Minister Suresh Prabhu has said.

The Department of Telecom (DoT) has put some condition while seeking views of the Department of Industrial Policy and Promotion (DIPP) on the proposal, media reports said.

“The matter is completely in the domain of the line ministry. We have already clarified. No need of our approval,” a PTI report quoted Prabhu as saying.

It was communicated to DoT that they are the competent authority to deal with the proposal, he reportedly said.

“We have sent back (the proposal) immediately. We have stated that it is for you to decide,” he said, adding that tax liabilities do not constitute additional condition.

Idea’s proposal assumes significance against the backdrop of pending merger with Vodafone India to form the country’s largest telecom operator, the report said.

The FDI policy allows an overseas firm to buy up to 49 per cent stake in an Indian telecom company under automatic approval route. But the government approval is required for stake above 49 per cent, it was highlighted.

Idea and Vodafone announced last year that they would combine their operations to create the country’s largest telecom operator worth over $23 billion, with a 35 per cent market share,  reported PTI.

Foreign share holding in Idea as on March 31, 2018, stood at around 34 per cent, including 7.49 per cent in promoter group and the rest as public shareholders. British telecom multinational Vodafone Group plc is a majority shareholder in Vodafone India, it added.