DoT for resolution of FDI norms for telcos
The Ministries of Home and Communications may be heading for a long battle over FDI norms with DoT insisting on parity in security condition compliance for both 74 or 49 per cent FDI in telcos and allowing appointment of foreign CEOs with security...
By PTI |
NEW DELHI: The Ministries of Home and Communications may be heading for a long battle over FDI norms with DoT insisting on parity in security condition compliance for both 74 or 49 per cent FDI in telcos and allowing appointment of foreign CEOs with security clearance.
While the Home Ministry has been persistently opposing both the above mentioned positions, the DoT is not in favour of granting further extension to the telcos as it is affecting its other priority areas of functions, which are related to clarity in FDI norms.
The Cabinet had set October 2 as the deadline for telcos to comply with new guidelines. Therefore, it is expected that no more extension will be given to the operators.
The main issues of current guidelines which have been a bone of contention between Home and DoT, are remote access, appointment of foreign CEOs in Indian telecom companies and separate security norms for companies with 49 per cent foreign equity and those with up to 74 per cent FDI.
While DoT feels the policy should have "no differential security conditions" for FDI below 49 per cent or up to 74 per cent, the Home Ministry wants to give greater consideration to security related issues in companies over 49 per cent foreign equity.
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