FDI hike in telecom sector not to be deferred

The Union Cabinet turned down a proposal by the Communications Ministry to keep in abeyance the increase in FDI.

By PTI | Sep 29, 2006, 09.16 PM IST

NEW DELHI: The Union Cabinet on Friday turned down a proposal by the Communications Ministry to keep in abeyance the increase in Foreign Direct Investment limit to 74 per cent from 49 per cent in telecom sector and directed resolution of inter-ministerial differences within three months.

"Department of Telecom had suggested suspension of Press Note 5 and the matter was discussed. The decision to increase FDI to 74 per cent stands," Finance Minister P Chidambaram said after a Cabinet meeting chaired by the Prime Minister here.

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