Vodafone Group plans to take full ownership of its business in India, spending INR101 billion ($1.6 billion) to buy out minority investors, according to a Financial Times report.

There has been speculation about such a move following the introduction of new rules in August, which permit the 100 per cent ownership of India-based businesses by foreign telecom companies.

Overseas companies were previously limited to direct stakes of 74 per cent.

“We have always said we would like to increase our holding in the business and this further investment demonstrates Vodafone’s long-term commitment to India,” Vodafone said in a statement.

Vodafone’s stake in the Indian business currently stands at 64 per cent and it plans to buy out local investors such as billionaire Ajay Piramal, who holds an 11 per cent share. Vodafone India’s chairman, Analjit Singh, is one of the other minority shareholders.

Reuters reports that Vodafone is currently seeking approval from the Indian authorities to raise its stake.

The UK-based operator group previously said it is preparing to increase capital expenditure in its Indian business as part of an investment drive following the disposal of its 45 per cent stake in Verizon Wireless for $130 billion.

Telecommunications minister Kapil Sibal said last month that Vodafone informed the Indian government that it plans to invest more than $2 billion in India.

Vodafone entered India in 2007 when it acquired Hutchison Whampoa’s mobile assets in an $11 billion deal.