74% FDI in telecom
March 22, The Union Cabinet approved raising the limit of the foreign direct investment (FDI) in the telecom sector up to 74 percent. Only 49 percent FDI was allowed in the telecom sector till now. The cabinet decision comes ahead of the expiry on April 2 of the deadline for telecom sectors to meet the current norms. The Union Cabinet also approved revised conditions for such direct investment.
P.R.Dasmunsi, Minister of Information and Broadcasting told reporters that the department of telecommunications (DoT) would give secured network to defence. The DoT and security agencies had resolved their differences over the remote access issue.
The DoT has incorporated a series of additional security norms, including the setting up of a centralised interception and monitoring system as caveats of allowing remote access, for security concerns. The DoT is also for a centralised system through which service providers can be monitored from one location.
A director level representatives from security agencies would be there at the vigilance technical monitoring cells of the DoT. The cheif technical officer (CTO) could be a foreigner, while the officer dealing with network operation should be an Indian.
Mr.Dasmunsi said that the date of compliance of a note on FDI enhancement which incorporates those security issues on remote access for three months onwards from April 2, 2007. A high-level group had made these recommendations on allowing remote access to the country’s telecom network from foreign countries-in the light of growing terrorism and increasing security concerns.
Out the total 74 percent FDI, 49 percent would be direct and the rest will have to be routed through the Foreign Investment Promotion Board for clearnce. Initially there was a lot of controversy on raising of the FDI limit to 74 percent in the telecom sector.
