Business

Sistema to invest $5-7 b in India

NEW DELHI: In one of the biggest foreign investments in the telecom sector, Russian Telecom giant Sistema JSFC on Wednesday announced that it would invest $5-7 billion in the telecom sector to roll out mobile and telecom services in India in the next two to three years.

The Russian conglomerate, a $50-billion company having stakes in various sectors including oil and gas, real estate and IT, has already picked up 20 per cent stake in Shyam Telelink for $114 million. “We have already invested $900 million in India and hope to operate as a mobile service operator during the next two to three years after getting licence from the Indian Government,” Sistema Chairman Vladimir Yevtushenkov told The Hindu in an interaction during his visit to New Delhi with Russian Prime Minister Victor Zubkov.

Mr. Yevtushenkov said Sistema JSFC, whose office was formally launched in India by the Russian Prime Minister on Tuesday, was at present operating in 14 countries with varied business interests. India was an attractive and emerging market and his company was keen on investing in India in different fields including oil and gas, real estate and Information Technology in a big way.

Mr. Yevtushenkov, termed as the main advisor to the Russian Prime Minister, said the company had already bought a majority stake in Shyam Telelink and was now waiting for a formal licence to begin operations as a mobile operator. “We intent to invest nearly $5-7 billion in the telecom sector and hope to roll out service in the next two to three years,” he remarked. Sistema will ultimately pick up 49 per cent stake in Shyam Telelink with an option to expand it to 74 per cent.

He said talks were at present in the advanced stage for investments in real estate and the company had acquired huge tracts of land in Gurgaon. The total investment in real estate would be around $500 million in the coming years.

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