Tokyo: NTT Docomo Inc., locked in a financial dispute with India’s largest conglomerate, said the South Asian country’s government will need to take action to resolve the disagreement.
The Japanese carrier has been fighting its joint venture partner Tata Sons Ltd over the right to sell its stake in their Indian wireless telecommunications business for at least 50% of the original investment. India’s central bank has signalled that such a payment would violate rules governing investments from outside the country.
“To solve this problem, we need the Indian government’s action," said Kazuhiro Yoshizawa, Docomo chief executive officer, following a briefing held to discuss first-half earnings. “It’s important that we keep talking with Tata to reach some sort of basic agreement."
The dispute with Japan’s largest wireless carrier has also reportedly emerged as a theme in a boardroom battle that erupted within Tata this week with the ouster of former chairman Cyrus Mistry. The ex-chief was replaced by his predecessor Ratan Tata, head of the group in 2009, when Docomo first invested in Tata Teleservices. Bloomberg