Foreign execs may get to stay if DoT has its way
Telecom firms that have non-Indian CEOs or CFOs may get to keep them, as the DoT is understood to have convinced security agencies that foreign officials were no threat to the country.
By PTI |
NEW DELHI: Telecom firms that have non-Indian CEOs or CFOs may get to keep them, as the Department of Telecommunications (DoT) is understood to have convinced security agencies that foreign officials were no threat to the country.
DoT, which held extensive discussions with security agencies in this regard, has also possibly found a practical solution to allowing companies remote access to haul telecom traffic outside India, informed sources said.
It has suggested that remote access may be allowed on the condition that telcos would, over a specified period of time, have to set up network operation centre in India.
Till such time, remote access could be allowed with proper checking (by intelligence agencies).
The DoT, which has defended its decision to allow up to 74 per cent foreign direct investment in telecom sector, is in the process of approaching the Cabinet in the second week of this month with a note that, among others, proposes allowing appointment of foreigners to key positions and remote access.
What this means is that if the Cabinet approves the DoT's views, companies like Tata Teleservices, which has a foreign CEO (Darryl Green) can get to retain them.
The government has extended the deadline on a number of occasions to meet the conditions of having only Indians in top management positions and adhering to norms on remote access. Telecom companies now have time till January 2, 2007.
Sources said that the dual guidelines of up to 49 per cent and between 49-74 per cent would also be done away with regard to security norm enforcement.Communications Minister Dayanidhi Maran has been saying that security interests of the country would not be compromised while permitting larger foreign investments.
FDI up to 49 per cent falls on the automatic route, while anything above that comes under the approval route. Companies seeking to raise FDI level above 49 per cent have to get FIPB approval with DoT go-ahead.
While security checks and norms for companies up to 49 per cent were almost nil, it is stringent for companies with 74 per cent FDI. This was creating an uneven playing field.
Maran has also been stating that FDI policy in telecom would ensure equality. The National Security Council under the PMO wants security issues to be handled by it separately and is pressing for dual norms for FDI.
Press Note 5 says a majority of directors on the board of the companies, including the chairman, managing director and chief executive officer shall be resident Indian citizens. The appointment to these positions shall be made in consultation with Indian investors.
DoT, which held extensive discussions with security agencies in this regard, has also possibly found a practical solution to allowing companies remote access to haul telecom traffic outside India, informed sources said.
It has suggested that remote access may be allowed on the condition that telcos would, over a specified period of time, have to set up network operation centre in India.
Till such time, remote access could be allowed with proper checking (by intelligence agencies).
The DoT, which has defended its decision to allow up to 74 per cent foreign direct investment in telecom sector, is in the process of approaching the Cabinet in the second week of this month with a note that, among others, proposes allowing appointment of foreigners to key positions and remote access.
What this means is that if the Cabinet approves the DoT's views, companies like Tata Teleservices, which has a foreign CEO (Darryl Green) can get to retain them.
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The government has extended the deadline on a number of occasions to meet the conditions of having only Indians in top management positions and adhering to norms on remote access. Telecom companies now have time till January 2, 2007.
Sources said that the dual guidelines of up to 49 per cent and between 49-74 per cent would also be done away with regard to security norm enforcement.Communications Minister Dayanidhi Maran has been saying that security interests of the country would not be compromised while permitting larger foreign investments.
FDI up to 49 per cent falls on the automatic route, while anything above that comes under the approval route. Companies seeking to raise FDI level above 49 per cent have to get FIPB approval with DoT go-ahead.
While security checks and norms for companies up to 49 per cent were almost nil, it is stringent for companies with 74 per cent FDI. This was creating an uneven playing field.
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Maran has also been stating that FDI policy in telecom would ensure equality. The National Security Council under the PMO wants security issues to be handled by it separately and is pressing for dual norms for FDI.
Press Note 5 says a majority of directors on the board of the companies, including the chairman, managing director and chief executive officer shall be resident Indian citizens. The appointment to these positions shall be made in consultation with Indian investors.
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Yet another clause in Press Note 5 pertains to remote access, which it says shall be provided to any equipment manufacturer or any other agency outside the country for any maintenance/repairs by the licensee.
It said remote access may be allowed for catastrophic software failure (such as failure to boot up), which would lead to a major part of the network becoming non-functional for a prolonged period, subject to meeting the conditions where an identified government agency (Intelligence Bureau) will be notified when remote access is to be provided.
The control of remote access activation, transfer of data and termination shall be within the country and not at a remote location abroad, it said.
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