Cabinet grants 3 month extension to DoT on FDI
The Cabinet on Thursday agreed to extend the deadline by three months for implementing the revised guidelines for Foreign Direct Investment in telecom sector.
By PTI |
NEW DELHI: The Cabinet on Thursday agreed to extend the deadline by three months for implementing the revised guidelines for Foreign Direct Investment in telecom sector.
The Cabinet has extended the time by another 3 months, Parliamentary Affairs Minister P R Dasmunsi told reporters after the meeting.
The Department of Telecom (DoT) is sorting out some of the security-related issues while implementing the enhanced FDI of 74 per cent from 49 per cent.
The issue of FDI in telecom has become a tug-of-war between National Security Council (NSC) and the DoT and various issues still need to be resolved, sources said.
On March 7, the government announced changes in the guidelines governing increased FDI from 49 per cent to 74 per cent and had then extended the time limit for the telecom service provider companies for four months (from March 3 to July 2) to comply with the guidelines.
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The ministry officials involved in the process said the Department had sought uniform guidelines for companies up to 49 per cent and between 49-74 per cent FDI.The current guidelines, which deal with two sets of norms, one for companies up to 49 per cent FDI and the other for between 49-74 per cent FDI should not have been agreed in the first place when it was being worked out because implementing two sets of norms is not workable.
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