Foreign Investment Promotion Board (FIPB) on Monday gave its nod to British telecom giant Vodafone on to increase its stake to 100 per cent from 64.38 per cent at present. The Cabinet Committee on Economic Affairs however will take a final call on the Rs 10,141-crore transaction.

"We are pleased to have obtained FIPB approval to increase our stake in Vodafone India. The Cabinet Committee on Economic Affairs still has to endorse this decision before either transaction can take place," Vodafone said in a statement. All foreign investment proposals of over Rs 1,200 crore have to be approved by CCEA.

Piramal which holds almost 11% stake in India's second-largest telecom company in terms of by subscribers will get Rs 8,900 crore, while Analjit Singh with a 24.65% holding will receive 1,241 crore. 

Piramal had first bought about 5.47 per cent stake for Rs 2,893 crore in 2011. In February 2012, it bought 5.5 per cent more for Rs 3,007 crore. In the process, Vodafone India’s valuation rose 48 per cent since February 2012, when Piramal Enterprises took 5.5 per cent in Vodafone India for Rs 3,007 crore.

In July the government on Tuesday gives its nod to 100 per cent foreign direct investment (FDI) in the telecom sector.

There has been a demand for this by telecom industry which is under tremendous financial burden. GSM industry body COAI has put the debt of telecom sector at Rs 1,85,720 crore at end of 2011-12.