Sawires: Interested

New Delhi, Dec. 16: Orascom, the Egyptian telecom giant, today expressed its desire to pick up direct stakes in Indian firms while expressing surprise at being termed as a security threat to India.

“We would want to pick up direct stakes in Indian telecom companies, provided there is a clarity on FDI and security issues,” said Naguib Sawires, chief executive officer of Orascom.

“The security issue surprises me, just because we operate in Pakistan does not mean our company becomes a threat to any nation’s security,” he added.

Orascom, a key mobile player in Pakistan, had given rise to security concerns among Indian intelligence agencies after it acquired an indirect 10 per cent stake in private mobile operator Hutchison Essar.

Even the head of Pakistan telecom regulator Shahzada Alam Malik wondered as to how a mobile operator working in his country could be a threat to India.

“I don’t understand the fact that if one player is operating in Pakistan and if it chooses to enter India, how does the security concern come in and vice versa. Of course, if there are any concerns it should be investigated,” said Malik, chairman of Pakistan Telecom Authority (PTA).

“In my opinion, Orascom is just like any other operator, and should not be held in prejudice just because it is operating in Pakistan, unless Indian intelligence agencies have evidence against them,” Malik added.

Orascom, a heavyweight in the Cairo stock exchange, is looking at investments not just in the telecom sector but various other sectors, including fertilisers, steel, cement and hotels.

“Our main purpose of visit to India is to get a bigger foothold in various sectors here, and also to get some clarity on security and FDI issues,” said Sawires. “We also want to know if there is any restriction on our companies operating in India, and if so, why.”

On security concern, Sawires said, “A country which is looking for $300-400 billion foreign investment should not club security with investments.”

“It is a dangerous mix. Our company is no security hazard to India. The fact is that Hutchison Essar is managed by Indians. When you have $10-15 billion investment in a country, you become a protector of that country, and would not want to harm your prospects in that country in any manner.”