04:54 am - Thursday 27 April 2017

Telecom Commission approves 100 percent FDI in the sector

By insightVAS - Wed Jul 03, 12:32 pm

The highest decision making body in Telecommunications Ministry, Telecom Commission has approved the 100 percent foreign direct investment (FDI) in the industry raising it from 74 percent to 100 percent. Allowing full foreign ownership will mean companies such as Vodafone Group Plc , Telenor ASA  and Sistema will not need Indian partners to operate in the country.

The Telecom Commission will send its recommendations to the Department of Industrial Policy and Promotion (DIPP), the government official said. The DIPP after consulting other ministries will send a final proposal to be approved by the federal cabinet, the official added.

“We have said it should be done in consultation with home and other concerned ministries,” the official said.

Media reports have said the home ministry has raised security concerns over further opening up sectors like telecom, defence and civil aviation.

However, another senior government official, who deals with foreign investment issues, said the licensing rules for telecom companies already took care of security concerns.

Sistema’s Indian unit said in a statement, it supports 100 percent foreign holding in telecoms companies, calling it a pro-industry and pro-consumer move.

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