MOSCOW, Dec 10 - Sistema Shyam Teleservices, the Indian mobile unit of Russian oil-to-telecoms group Sistema (SSAq.L), has approved a new share issue that could raise nearly 35 billion rupees ($750 million), Sistema said on Thursday.

The company plans to sell 662.7 million shares to Russia's state property management agency as part of India's debt settlement scheme, and 228.5 million to its existing Indian shareholders.

The price for Indian shareholders was set at face value, or 10 rupees per share, while the Russian government will pay 49.31 rupees, Sistema said in a statement.

The issue will increase Sistema Shyam's share capital to 3.35 billion shares from nearly 2.5 billion.

Sistema Shyam has more than 2.3 million subscribers and holds licences for the whole of India. Sistema owns 73.71 percent of the company and India's Shyam Group has 23.79 percent.

The Russian government will own 20 percent after the share issue, while Sistema's stake will be diluted to 54 percent. (Reporting by Maria Kiselyova; Editing by David Holmes) ($1=46.64 Rupee)