(Telecompaper) Russian conglomerate Sistema has entered talks to sell its Indian mobile operator to Reliance Communications. The company confirmed it was in exclusive talks with RCom to merge Sistema Shyam TeleServices, which operates under the name MTS India, with its larger rival. Sistema would receive a stake in RCom as payment. Sistema said the talks are at an early stage and any deal remains subject to due diligence. MTS India operates on a limited scale in India, in just nine states including the Delhi area. While the company has been growing since the introduction of 3G, it remains loss-making and lacks the scale to compete with bigger operators in India. In addition to its around 9 million customers, the takeover would give RCom additional spectrum licences in key markets.