Cabinet to discuss 74% FDI in telecom sector today

Cabinet to discuss 74% FDI in telecom sector today
PTI
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First Published: Thu, Mar 22 2007. 02 54 AM IST
Updated: Thu, Mar 22 2007. 02 54 AM IST
New Delhi:The Union cabinet is likely to take up a proposal on 22 March to enhance foreign direct investment limit in telecom to 74%, in an effort to come out with guidelines before the current deadline of 2 April for meeting the norms expires. The department of telecom (DoT) and security agencies have resolved their differences over the remote access issue, and if the Cabinet gives its approval, there is a possibility that the guidelines would be framed, sources said.
DoT has incorporated a series of additional security norms, including the setting up of a centralized interception and monitoring system as caveats for allowing remote access. After meetings held under the cabinet secretary-headed committee on FDI in telecom, DoT and security agencies have agreed to allow remote access to mobile operators, albeit with some caveats, sources said.
In December 2006, the Cabinet had extended the deadline for operators to comply with the norms for an increased FDI limit of 74%. Norms relating to allowing remote access, appointment of foreigners in top positions and taking away veto powers from Indian shareholders with 10% equity in telecom joint ventures are some of the key revisions in the guidelines that are expected to be notified when the current deadline of 2 April expires, the sources said.
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First Published: Thu, Mar 22 2007. 02 54 AM IST