The Foreign Investment Promotion Board (FIPB) Monday approved a proposal of British telecom major Vodafone Group Plc to increase its stake to 100% in the Indian holding with an investment of around Rs.10,141 crore ($1.7 billion).
Vodafone would now need final approval from the cabinet.
Vodafone entered India in 2007 by buying Hutchison Whampoa's assets in a $11 billion deal. It directly owns 64.38% in its India unit.
In August 2013, the country allowed 100% foreign direct investment (FDI) in telecommunications sector, which would facilitate players like Vodafone Group Plc to fully own their India units.
Earlier in October this year, Vodafone said it has filed an application with the FIPB to raise stake in the Indian venture from 64.38 to 100%.