Telecom Commission endorses 100% FDI in telecom sector - 03.07.2013: *Source: ETnews The Telecom Commission, the highest decision-making body of the department of telecom (DoT), on Tuesday approved 100% foreign direct investment in the telecom sector. Once ratified, the new policy will allow foreign telecom operators to buy out existing Indian partners, as they will no longer need to have a minority shareholderin the country. This was one of the recommendations of a high-powered committee chaired by Arvind Mayaram, secretary in the department of economic affairs in the ministry of finance, which suggested more liberal FDI norms for various sectors, including aviation and telecommunications. The decision comes even as the home ministry warned against removing any restrictions on FDI in certain critical sectors, citing security concerns. The Telecom Commission has allowed up to 49% FDI through the automatic route, with further investments subject to approval by the Foreign Investment Promotion Board, a senior government official said. The decision will come into force once the Cabinet approves it. At present, FDI in the sector is permissible only up to 74%, of which 49% is under automatic route while the remaining is subject to an approval from the FIPB. While doing away with FDI curbs will help all telcos in raising money, the news will bring cheer especially to foreign operators, who have minority partners in India.
Posted on: Wed, 03 Jul 2013 05:43:24 +0000
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